India's outward FDI commitments halve from April high, rise 35% on year

Guarantees, equity investments and loans declined from April levels, though total overseas commitments remained significantly higher than a year earlier

India’s outward foreign direct investment (OFDI) commitments fell nearly 49 per cent in May from the previous month as equity investments, loans and guarantees declined from April levels, although overall overseas commitments remained higher than a year ago, Reserve Bank of India (RBI) data showed on Tuesday.

 

Total financial commitments by Indian entities stood at $4.49 billion in May, down from $8.84 billion in April, but up 34.6 per cent from $3.34 billion in May 2025.

 

The month-on-month decline was led by a fall in guarantees issued, which dropped to $2.61 billion from $4.00 billion in April. Equity commitments fell to $1.25 billion from $3.54 billion, while loans declined to $632.1 million from $1.30 billion.

 

Guarantees more than doubled from $1.12 billion in May last year, while equity investments rose from $1.08 billion. Loans, however, fell from $1.14 billion a year earlier.

 

Guarantees accounted for the largest share of overseas financial commitments in May, followed by equity investments and loans.

 

Under the RBI’s overseas investment framework, financial commitments comprise equity investments, loans and guarantees extended by Indian entities to their overseas joint ventures and wholly owned subsidiaries.