India’s outward foreign direct investment (FDI) experienced a substantial 27.5 per cent increase, reaching $7.06 billion in March, primarily fuelled by a significant rise in guarantees for overseas units, as reported by the Reserve Bank of India.
Illustration: Uttam Ghosh
Key Points
- India’s outward foreign direct investment (FDI) increased by 27.5 per cent to $7.06 billion in March, up from $5.54 billion in the same month last year.
- The surge in outward FDI was largely propelled by guarantees for overseas units, which shot up to $4.91 billion in March.
- Outbound equity FDI commitment moderated to $1.46 billion in March, while debt (loans) also dropped to $691.95 million.
- Major commitments include Tata Motors’ $2.26 billion in guarantees for its Singapore subsidiary and Reliance Industries’ $250 million for its UAE subsidiary.
- For the financial year 2025-26, outbound FDI rose to $48.6 billion, an increase from $43.7 billion in the previous fiscal year.
India’s outward foreign direct investment (FDI) grew 27.5 per cent to $7.06 billion in March, from $5.54 billion in the same month last year. Sequentially, it surged from $2.96 billion in February, according to data from the Reserve Bank of India (RBI).
Components of Outbound FDI
Outbound FDI, expressed as financial commitment, has three components: equity, loans, and guarantees.
Outbound equity FDI commitment moderated to $1.46 billion in March from $2.56 billion a year ago.
However, it was higher than $1.15 billion in February 2026.
Outbound FDI in the financial year 2025-26 (FY26) rose to $48.6 billion, compared to $43.7 billion in FY25.
Debt (loans) dropped to $691.95 million in March from $1.52 billion in the same month a year ago.
However, it was higher than $741.16 million recorded in February 2026.
Guarantees for overseas units shot up to $4.91 billion in March from $1.45 billion a year ago and were higher than $1.078 billion in February 2026.
Key Investments Driving the Surge
According to data on key investments by companies, Tata Motors has committed $2.26 billion in guarantees for its Singapore-based wholly owned subsidiary, TML CV Holdings.
Reliance Industries has committed $250 million in guarantees for its UAE-based wholly owned subsidiary, Reliance International.
Renew Treasury IFSC Private has committed guarantees worth $660 million for its wholly owned subsidiary in IFSC GIFT City.
Similarly, Jindal Power has committed $558.25 million in guarantees and $20 million in debt towards its Mauritius-based wholly owned subsidiary.
Rolta India has also committed $450 million in guarantees for its US-based wholly owned subsidiary.
Superform Chemistries has committed debt worth $100 million for its Mauritius-based wholly owned subsidiary.
Also, Lloyds Metals and Energy has committed debt worth $68.80 million for its UAE-based wholly owned subsidiary, and Patanjali Ayurved has committed debt worth $34.8 million for its UAE-based wholly owned subsidiary.
