Outward FDI commitments by Indian firms drop 49% in May: RBI data

India's total outward foreign direct investment commitments declined 49.02 per cent month-on-month to $4.49 billion in May 2026 from $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 $3.34 billion, data showed.

Equity investments abroad dropped sharply to $1,247.82 million in May from $3,537.35 million in April, marking a decline of about 64.72 per cent.

Overseas loans extended by Indian companies also declined to $632.12 million in May from $1,299.69 million in April.

 

Guarantees issued, which formed the largest component of overseas commitments, fell to $2,608.83 million in May from $3,999.79 million in April, declining around 35 per cent. However, it increased from $1,122.37 million in May 2025.

In the equity investment segment, Indovida India invested $673.2074 million abroad, Tata International of $130 million, Arvind Advanced Materials of $58 million, and ONGC Videsh Rovuma of $31.09 million, RBI data showed.