Actual overseas direct investment (ODI) outflow at the end of Fiscal Year 2025-26 surged nearly 84 per cent over FY24, data from Finance Ministry showed. Singapore tops in terms recipient, while combination of financial, insurance and business services accounted for 45 per in total outflow.
According to data, actual ODI outflow reached over $26.7 billion at the end of FY26 as compared to $24.2 billion of FY 25 and around $14.5 billion of FY24. In FY 26, out of actual outflow, equity investment by Indian entities was over $18.6 billion, while loans accounted for over $8 billion. During the entire fiscal year, September saw highest outflow with over $4 billion while November accounted for lowest with over $0.8 billion.
During FY 26, Singapore attracted most outflow with over $7.6 billion, followed by US with over $4billion and Mauritius with over $2.4 billion. In terms of sectors, ‘Financial, Insurance and Business Services’ got maximum with over $11 billion, followed by manufacturing at over $4.6 billion and ‘Wholesale, Retail Trade, Restaurants and Hotels’ got around $3 billion.
ODI refers to investments made by Indian entities in a foreign country. In this form of investment, Indian companies and individuals can enter into a Joint Venture (JV) or have their wholly owned subsidiary (WOS) in a different country. ODI is made with the view to diversify the current businesses of an Indian entity outside the country. ODI can be achieved either through automatic or approval route. Resident individuals can also go for an ODI by way of JV or WOS outside India, under the Liberalised Remittance Scheme (LRS) of $250,000 per financial year.
According to a Finance Ministry notification, issued in August 2022, an Indian entity can invest up to four times of net worth in a foreign entity. Also, it is permitted to put up to 50 per cent of its net worth in overseas portfolio investment. The ministry said that in view of the evolving needs of businesses in India, in an increasingly integrated global market, there is need of Indian corporates to be part of global value chain. The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics.
Published on May 6, 2026