NEW DELHI–India’s overseas direct investments jumped 40.8% in fiscal year 2025-26, significantly outpacing the growth in foreign direct investment (FDI) inflows and narrowing the gap between capital entering the country and investments made by Indian businesses abroad, according to data released by the Reserve Bank of India (RBI) on November 6.
The central bank’s latest annual census of foreign liabilities and assets showed that overseas direct investment (ODI) grew substantially faster than inward FDI, which increased 8.5% in rupee terms during the fiscal year.
As a result, the ratio of inward FDI to outward direct investment declined to 4.2 at the end of March 2026, compared with 5.5 a year earlier, reflecting the growing international investment activities of Indian companies.
The outstanding value of foreign direct investment in India reached Rs 70.72 lakh crore at the end of March 2026, up from Rs 65.17 lakh crore in the previous year.
Meanwhile, investments by Indian entities overseas climbed to Rs 16.71 lakh crore from Rs 11.87 lakh crore over the same period.
Measured in US dollars, India’s inward direct investment totaled $747.13 billion, while its outward direct investment stood at $176.59 billion.
The RBI census included 43,123 Indian entities reporting foreign direct investment or overseas direct investment positions as of March 2026. Of those, 41,814 were unlisted companies, representing approximately 97% of respondents.
Unlisted companies continued to dominate foreign investment activity when measured by the face value of equity capital, accounting for 97.9% of FDI equity holdings.
However, the distribution was considerably more balanced when investments were assessed at market value, with listed and unlisted companies holding nearly equal shares.
Unlisted businesses also represented 96.6% of outstanding FDI-related debt at the end of March 2026. Nonfinancial companies accounted for more than 90% of foreign direct investment equity capital measured at face value.
The United States maintained its position as India’s largest source of outstanding foreign direct investment, contributing 16.5% of the total as of March 2026.
Mauritius ranked second with a 14.5% share, followed by Singapore at 13.7% and the United Kingdom at 10.8%.
For Indian investments abroad, Singapore, the United Arab Emirates and the United States remained the leading destinations, collectively accounting for more than half of the country’s outstanding overseas direct investment.
Manufacturing attracted the largest portion of outstanding FDI equity when measured at market value, representing 50.1% of the total. The services sector followed closely, accounting for 45%.
The findings highlight the expanding international investment footprint of Indian businesses, even as the country continues to attract substantial foreign capital. (Source: IANS)
