India’s overseas investment commitments fall 49.02% to $4.49 billion in May 2026 as equity, loans and guarantees drop sharply
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India’s total outward Foreign Direct Investment (FDI) commitments declined 49.02% month-on-month to $4.49 billion in May 2026 from $8.84 billion, mainly due to a sharp fall in equity investments, loans, and guarantees issued by Indian companies, according to Reserve Bank of India (RBI) data.
However, total financial commitments by Indian entities under overseas investment rose 34.6% year-on-year in May 2026 compared with $3.34 billion in May 2025, data showed.
Equity investments abroad dropped sharply to $1,247.82 million in May 2026 from $3,537.35 million in April, marking a decline of about 64.72%.
Overseas loans extended by Indian companies also declined to $632.12 million in May 2026 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 2026 from $3,999.79 million in April, declining around 35%. However, guarantees increased from $1,122.37 million in May 2025.
In the equity investment segment, Indovida India invested $673.2074 million abroad, Tata International invested $130 million, Arvind Advanced Materials invested $58 million, and ONGC Videsh Rovuma invested $31.09 million, RBI data showed.
India’s outward foreign direct investment (FDI) commitments in FY25 were estimated at around $44–45 billion, according to RBI’s monthly reporting trend. Guarantees remained the dominant component, accounting for nearly 50–60% of total overseas commitments, followed by equity investments and loans.
The overall increase reflected continued global expansion by Indian corporates across energy, IT services, pharmaceuticals and manufacturing. According to RBI data, India’s total domestic fertiliser production rose from 433.29 lakh tonne in 2021 to 524.62 lakh tonne in 2025, while outward investment commitments have moved in tandem with corporate global expansion strategies.
Earlier, RBI data revealed that India recorded a current account surplus of $7.1 billion, or 0.7% of GDP, in the fourth quarter (January–March) of FY26, aided by robust services exports and strong remittance inflows that helped offset a widening merchandise trade deficit.
The surplus marks a sharp turnaround from the current account deficit of $13.2 billion (1.3% of GDP) reported in the preceding quarter. However, it was lower than the $13.7 billion surplus recorded in the corresponding quarter of FY25, reflecting pressure from a larger goods trade gap. (With Inputs from PTI)