India's overseas FDI investments fall 49% to $4.49 billion in May: RBI

India's outward foreign direct investment (FDI) commitments fell sharply by 49.02 per cent month-on-month to $4.49 billion in May 2026, primarily due to lower equity investments, overseas loans, and guarantees issued by Indian companies, according to data released by the Reserve Bank of India.
According to information,the country's total overseas financial commitments stood at $4.49 billion in May, down from $8.84 billion recorded in April 2026. Despite the sequential decline, outward investment commitments were 34.6 per cent higher compared with $3.34 billion reported in May 2025, reflecting continued overseas expansion by Indian businesses on an annual basis.Equity investments witnessed the steepest decline during the month, dropping nearly 64.7 per cent to $1.25 billion from $3.54 billion in April. The fall in equity infusion was a key factor behind the overall moderation in outward investment activity.
Overseas loans extended by Indian entities also declined significantly, falling to $632.12 million in May from $1.30 billion in the previous month.Guarantees, which constituted the largest component of overseas financial commitments, decreased by around 35 per cent to $2.61 billion in May from nearly $4 billion in April. However, guarantees remained substantially higher than the $1.12 billion recorded in the same month last year, indicating stronger cross-border business commitments compared with 2025.
According to RBI data, guarantees accounted for more than half of India's total outward investment commitments during the month, underscoring their growing importance in facilitating overseas business operations and investments.Among major overseas equity investments made by Indian companies in May, Indovida India led the list with investments worth $673.21 million. This was followed by Tata International, which invested $130 million overseas.Other notable investments included $58 million by Arvind Advanced Materials and $31.09 million by ONGC Videsh Rovuma.Outward FDI commitments comprise equity investments, debt instruments, and guarantees extended by Indian entities to their overseas ventures and subsidiaries. The data serves as an indicator of Indian companies' global expansion strategies and cross-border investment activity.While the sharp month-on-month decline reflects a moderation from April's elevated levels, the year-on-year increase suggests that Indian firms continue to pursue overseas investment opportunities amid growing international business engagement.

(Business Correspondent)