Key facts
- India's outward FDI commitments decreased by 49.02% month-on-month to $4.49 billion in May 2026.
- Equity investments abroad saw a significant drop of 64.72% to $1,247.82 million in May.
- Overseas loans and guarantees issued by Indian companies also declined in May.
- Year-on-year, total financial commitments by Indian entities abroad increased by 34.6%.
India's outward foreign direct investment commitments saw a significant decrease of 49.02% month-on-month in May 2026, falling to $4.49 billion from $8.84 billion in April. This decline was primarily driven by reduced equity investments, loans, and guarantees issued by Indian companies.
Equity investments abroad dropped sharply by 64.72% to $1,247.82 million in May, compared to $3,537.35 million in April. Similarly, overseas loans extended by Indian firms decreased to $632.12 million from $1,299.69 million. Guarantees issued, which represent a substantial portion of overseas commitments, also fell by approximately 35% to $2,608.83 million in May from $3,999.79 million in April.
Despite the monthly contraction, total financial commitments by Indian entities for overseas investments showed a year-on-year increase of 34.6%, rising from $3.34 billion in May 2025. Notable equity investments in May 2026 included $673.21 million by Indovida India, $130 million by Tata International, $58 million by Arvind Advanced Materials, and $31.09 million by ONGC Videsh Rovuma.