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India's total outward foreign direct investment commitments declined 49.02 per cent month-on-month to USD 4.49 billion in May 2026 from USD 8.84 billion, mainly due to lower equity investments, loans, and guarantees issued by Indian companies, according to RBI data. However, total financial commitments by Indian entities under overseas investment increased 34.6 per cent year-on-year in May 2026 from USD 3.34 billion, data showed. Equity investments abroad dropped sharply to USD 1,247.82 million in May from USD 3,537.35 million in April, marking a decline of about 64.72 per cent. Overseas loans extended by Indian companies also declined to USD 632.12 million in May from USD 1,299.69 million in April. Guarantees issued, which formed the largest component of overseas commitments, fell to USD 2,608.83 million in May from USD 3,999.79 million in April, declining around 35 per cent. However, it increased from USD 1,122.37 million in May 2025. In the equity investment segment, Indovida I
Free Trade Agreements (FTAs), reduction in import tariffs and improvement in business environment would encourage higher net foreign capital inflows into India, which have moderated in recent years, ADB Chief Economist Albert Park has said. During 2021-22, India attracted net Foreign Direct Investment (FDI) of USD 38.6 billion, which came down to USD 28 billion in FY23 and further fell to USD 10.2 billion in FY24. Net FDI -- inflow minus outflow -- came down significantly to single digit to USD 1 billion in FY25 but improved to USD 3 billion during the April-December period of FY26. The government should continue reducing import tariffs to ensure foreign investments remain competitive, he told PTI in an interview. It also needs to strengthen the overall manufacturing ecosystem by developing industrial zones with robust infrastructure and integrated facilities, making them easier for foreign firms to address their business needs efficiently in one place, he said, adding that free tr
Rare earth magnets and printed circuit boards are among 40 sub-sectors identified by the government for expedited clearance within 60 days of FDI proposals from China and other countries sharing land borders with India. The government has also laid out procedural guidelines for foreign direct investment (FDI) proposals from these countries - China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan - in the specified sectors or activities, according to the updated standard operating procedure for processing of FDI proposals. The move follows a decision by the government in March to process and decide FDI proposals from these countries in specified manufacturing sectors or activities within 60 days. However, it has stated that in these cases, the majority shareholding and control of the investee entity will be with resident Indian citizens/or resident Indian entity owned and controlled by Indians at all times. The 40 sub-sectors are under six broad sectors - capital goods