Indian companies significantly increased their investments abroad in the financial year 2025-26, with overseas direct investment (ODI) rising 40.8% in rupee terms, according to the Reserve Bank of India’s latest census on foreign liabilities and assets. The growth was substantially faster than the 8.5% increase in foreign direct investment (FDI) into India, signalling a stronger overseas expansion push by Indian businesses.
The faster rise in outward investment narrowed the gap between foreign capital invested in India and Indian companies’ investments overseas. The ratio of outstanding inward FDI to outward ODI declined to 4.2 times at the end of March 2026, compared with 5.5 times a year earlier. The RBI released the provisional findings of its annual census on November 6, providing a snapshot of India’s expanding cross-border investment relationships.
Indian Companies’ Overseas Investments Reach ₹16.71 Lakh Crore
The RBI census showed that the outstanding value of Indian entities’ overseas direct investments increased to ₹16.71 lakh crore at the end of March 2026, compared with ₹11.87 lakh crore in March 2025.
In dollar terms, the value of outward direct investment stood at approximately $176.59 billion. The increase reflects the growing international presence of Indian businesses through investments in foreign subsidiaries, joint ventures and associated companies.
During the same period, outstanding inward direct investment in India rose to ₹70.72 lakh crore from ₹65.17 lakh crore a year earlier. This represented growth of 8.5% in rupee terms, considerably slower than the expansion recorded in overseas investments.
| Investment indicator | March 2025 | March 2026 |
|---|---|---|
| Outstanding inward FDI | ₹65.17 lakh crore | ₹70.72 lakh crore |
| Outstanding outward ODI | ₹11.87 lakh crore | ₹16.71 lakh crore |
| Inward FDI-to-ODI ratio | 5.5 times | 4.2 times |
| Growth in outward ODI | — | 40.8% |
| Growth in inward FDI | — | 8.5% |
The figures represent outstanding investment positions rather than only the money transferred during the financial year. This distinction is important because changes in investment stocks can also reflect valuation movements caused by exchange-rate and market-price changes.
Why Are Indian Companies Investing More Overseas?
Overseas direct investment allows Indian businesses to establish or acquire operations in foreign markets. Companies may invest abroad to access new customers, strengthen supply chains, acquire technology, secure raw materials and expand their international presence.
For Indian companies, overseas subsidiaries and joint ventures can provide a route to markets where local operations offer commercial or strategic advantages. Businesses may also use foreign investments to build distribution networks, manufacture closer to customers or access specialised capabilities.
The RBI’s latest figures indicate that outward investment has become a more significant part of India’s cross-border investment position. However, the census does not establish that any single factor caused the increase. The expansion should therefore be understood as a broad change in the outstanding overseas investment position rather than evidence of one specific investment strategy.
The data also covers several types of Indian entities, including companies, limited liability partnerships, alternative investment funds and partnership firms with inward or outward direct investment.
Singapore, UAE and US Lead as Destinations for Indian Investments
The RBI census identified Singapore, the United Arab Emirates and the United States as the leading destinations for India’s overseas direct investment. Together, these three destinations accounted for more than half of the total outstanding ODI position.
Their importance reflects the role of major international business centres and large consumer markets in Indian companies’ global expansion strategies. Singapore is an important regional business and financial hub, while the UAE provides access to markets across the Middle East and beyond. The US offers a large market and opportunities across technology, manufacturing and services.
The RBI’s data highlights the following leading destinations:
- Singapore: One of the largest destinations for Indian overseas investment.
- United Arab Emirates: A major destination for Indian entities expanding internationally.
- United States: A leading destination, alongside its position as the largest source of inward FDI into India.
The central bank’s published summary identifies the three countries collectively as accounting for more than 50% of India’s outstanding overseas direct investment.
US Remains India’s Largest Source of Foreign Direct Investment
While Indian companies are expanding abroad, the United States continues to be the largest source of outstanding foreign direct investment into India.
At the end of March 2026, the US accounted for 16.5% of India’s outstanding inward FDI. Mauritius ranked second with 14.5%, followed by Singapore at 13.7% and the United Kingdom at 10.8%.
| Source of inward FDI | Share of outstanding FDI |
|---|---|
| United States | 16.5% |
| Mauritius | 14.5% |
| Singapore | 13.7% |
| United Kingdom | 10.8% |
These figures represent the stock of outstanding investment, not the share of new FDI inflows received during FY26. They show the countries that account for the largest portions of the accumulated foreign direct investment position in India.
The continued presence of the US, Mauritius, Singapore and the UK among the leading sources also highlights the importance of international financial and corporate structures in cross-border investment.
Unlisted Companies Account for Most Reporting Entities
The RBI census covered 43,123 Indian entities reporting inward FDI and/or outward ODI as of March 2026. Of these, 41,814 were unlisted entities, representing approximately 97% of the total.
The data also revealed differences between listed and unlisted companies in the composition of foreign investment.
Unlisted entities accounted for 97.9% of FDI equity capital at face value. However, when measured at market value, listed and unlisted companies had almost equal shares of total FDI equity capital.
Unlisted companies also held 96.6% of outstanding FDI debt at the end of March 2026. Meanwhile, non-financial companies accounted for more than 90% of FDI equity capital at face value.
These figures underline the importance of privately held businesses and non-financial enterprises in India’s foreign investment landscape. They also show why focusing only on publicly traded companies would provide an incomplete picture of cross-border corporate investment.
Manufacturing and Services Dominate Foreign Investment
Manufacturing accounted for the largest share of outstanding FDI equity capital at market value, representing 50.1% of the total. The services sector followed with a 45% share.
The distribution highlights the importance of both industrial production and services in India’s foreign investment position. Manufacturing’s leading share reflects the substantial role of foreign capital in industrial businesses, while the services sector remains another major destination for international investment.
The RBI also reported growth in other cross-border investment positions involving unrelated non-resident entities. Other investment liabilities, which include trade credit, loans, currency and deposits, and other payables, increased 11.9% year-on-year in rupee terms.
Other investment assets with unrelated non-residents rose 16.1% over the same period. These categories are separate from direct investment and provide a broader view of Indian entities’ financial relationships with overseas counterparties.
The Bigger Picture
The narrowing gap between inward FDI and outward ODI points to a changing pattern in India’s international investment position. Foreign investment into India remains considerably larger, but Indian businesses are increasingly building financial and operational connections outside the domestic market.
The figures also demonstrate why outward investment should not automatically be interpreted as capital leaving India without economic benefits. Overseas subsidiaries and joint ventures can support exports, create access to international markets and strengthen the global competitiveness of Indian companies. At the same time, the scale and quality of these investments will matter when assessing their long-term contribution to domestic businesses and the wider economy.
An important qualification is that the RBI’s census measures outstanding foreign assets and liabilities, which can change because of valuation movements as well as new investments and withdrawals. The figures therefore differ from annual investment flows recorded in India’s balance of payments statistics.
Looking Ahead
The next phase of India’s overseas investment expansion will depend on companies’ ability to identify commercially sustainable opportunities, manage currency and geopolitical risks, and integrate foreign operations with their domestic businesses. Singapore, the UAE and the US are likely to remain important destinations to watch as Indian companies pursue international growth.
For policymakers, the changing balance between inward and outward investment will remain an important indicator of India’s integration with the global economy. The RBI’s next annual census will help establish whether the faster growth in overseas investment continues and whether the ratio between inward FDI and outward ODI narrows further.
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