The Reserve Bank of India (RBI) in its latest data has showed that India's total outward foreign direct investment (FDI) commitments fell by 49.02 per cent month-on-month, dropping to $4.49 billion in May 2026 from $8.84 billion in April 2026. The decline was led by a reduction in overseas equity investments, loans, and guarantees. However, total financial commitments by Indian entities overseas increased 34.6 per cent year-on-year in May 2026 from $3.34 billion recorded in May 2025.
According to the data, equity investments abroad plummeted to $1,247.82 million in May from $3,537.35 million in April, marking a sequential decline of about 64.72%. Overseas loans extended by Indian companies also moderated to $632.12 million in May 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 from $3,999.79 million in the previous month, declining around 35 per cent. However, it increased from $1,122.37 million in May 2025.
Among major overseas equity investments during the month, Indovida India invested $673.2 million, followed by Tata International at $130 million, Arvind Advanced Materials at $58 million, and ONGC Videsh Rovuma at $31.1 million.
