Indian Companies Outward Direct Investment Surges 41% to Rs 16.71 Lakh Crore in FY26, RBI Census Shows
Overseas direct investment (ODI) by Indian companies expanded sharply during financial year 2025–26, outpacing the growth of foreign direct investment (FDI) coming into the country, according to data released by the Reserve Bank of India (RBI).
The findings, published in the RBI's annual Census on Foreign Liabilities and Assets of Indian Direct Investment Entities, show that the outstanding stock of outward direct investment reached Rs 16.71 lakh crore ($176.59 billion) as of March 2026, marking a 40.8% increase from Rs 11.87 lakh crore recorded a year earlier.
In comparison, the total stock of inward foreign direct investment grew at a more modest rate of 8.5%, increasing from Rs 65.17 lakh crore to Rs 70.72 lakh crore ($747.13 billion) over the same period. As a result of this divergence in growth rates, the ratio of inward FDI to ODI narrowed significantly to 4.2 times by the end of March 2026, compared to 5.5 times at the end of March 2025.
Capital Composition and Structural Shifts
A granular breakdown of the data indicates that corporate India's overseas expansion was funded by increases in both equity assets and cross-border debt instruments:
- Outward equity investments rose 31.8% to Rs 13.30 lakh crore from Rs 10.09 lakh crore.
- Outward debt exposure nearly doubled, surging to Rs 3.41 lakh crore from Rs 1.77 lakh crore.
- Inward FDI equity stock climbed to Rs 68.45 lakh crore from Rs 63.04 lakh crore.
- Inward FDI debt rose moderately to Rs 2.27 lakh crore from Rs 2.13 lakh crore.
Top Destinations for Outward Capital
Singapore, the United Arab Emirates (UAE), and the United States together accounted for more than half of India's total outstanding overseas direct investment. Singapore maintained its position as the top destination for Indian corporate capital, with total exposure climbing 37% to Rs 3.53 lakh crore, representing 21.1% of India's aggregate ODI stock.
The UAE registered the fastest acceleration, with Indian investment stock jumping 160% to Rs 2.71 lakh crore from Rs 1.04 lakh crore. This surge in the UAE was heavily driven by debt instruments, which surged from Rs 17,644 crore to Rs 1.53 lakh crore.
Sources and Sectoral Distribution of Inward FDI
On the inward investment front, the United States retained its status as the leading contributor of foreign capital into India, accounting for 16.5% of the total FDI stock. Mauritius followed with a 14.5% share, while Singapore accounted for 13.7% and the United Kingdom contributed 10.8%.
Sector-wise, manufacturing and services absorbed the lion's share of foreign liabilities. Manufacturing accounted for 50.2% of the outstanding FDI stock, closely followed by services at 44.8%. Within services, financial and insurance activities represented Rs 11.45 lakh crore (16.2% of total FDI), while telecommunications, computer programming, consultancy, and related IT services constituted 14.8%.
Coverage of Reporting Entities
The census covered 43,123 Indian enterprises reporting direct investment transactions, with unlisted companies making up 41,814 entities, or roughly 97% of the total. Unlisted firms accounted for 97.9% of FDI equity capital at face value and 96.6% of outstanding inward debt. However, when measured at market value, listed and unlisted companies held nearly equal shares of FDI equity capital.
