India's overseas direct investments (ODI) surged 40.8 per cent in rupee terms during 2025-26, sharply outpacing the 8.5 per cent growth in inward foreign direct investment (FDI), according to the Reserve Bank of India's (RBI) latest annual census on foreign liabilities and assets, released on 6 November 2026. The divergence has measurably narrowed the gap between capital flowing into India and capital deployed by Indian entities abroad.

The ratio of inward FDI to outward direct investment moderated to 4.2 times at the end of March 2026, down from 5.5 times a year earlier — a signal that Indian companies are increasingly expanding their global footprint.

Key Investment Numbers

The outstanding value of inward direct investment stood at ₹70.72 lakh crore at the end of March 2026, up from ₹65.17 lakh crore a year ago. Meanwhile, Indian entities' overseas direct investments rose to ₹16.71 lakh crore from ₹11.87 lakh crore over the same period — an increase of roughly ₹4.84 lakh crore in a single year. In dollar terms, inward FDI was valued at $747.13 billion while outward investment stood at $176.59 billion.

Who Was Surveyed and What They Hold

The census covered 43,123 Indian entities reporting FDI and/or ODI as of March 2026. Of these, unlisted entities accounted for 41,814, or approximately 97 per cent, of total respondents. Unlisted companies held 97.9 per cent of FDI equity capital at face value; however, when measured at market value, listed and unlisted companies held roughly equal shares — a distinction that underlines the significant premium attached to publicly traded firms.

Unlisted companies also accounted for 96.6 per cent of total outstanding FDI debt as of March 2026. Non-financial companies contributed more than 90 per cent of FDI equity capital at face value, according to the central bank's data.

Top Source Countries for Inward FDI

The United States remained the largest single source of outstanding FDI in India, accounting for 16.5 per cent of the total at end-March 2026. Mauritius followed with a 14.5 per cent share, while Singapore and the United Kingdom accounted for 13.7 per cent and 10.8 per cent, respectively. This concentration of FDI across four countries underscores India's continued reliance on a narrow set of investment partners, even as domestic policy seeks to diversify sources.

Where Indian Companies Are Investing Abroad

Singapore, the United Arab Emirates, and the United States together accounted for more than half of India's total ODI, reflecting a preference for regional financial hubs and anglophone markets. This comes amid growing regulatory momentum to streamline overseas investment norms, following the liberalisation of ODI rules in 2022.

Sectoral Breakdown

On a sectoral basis, manufacturing held the largest share of outstanding FDI equity at market value, accounting for 50.1 per cent, followed by services at 45 per cent. The manufacturing dominance aligns with India's sustained push to attract production-linked investment across electronics, pharmaceuticals, and capital goods. Notably, the services sector's near-equal share suggests that India's digital and financial services ecosystem continues to draw substantial foreign capital.

With Indian companies accelerating outbound investment and the FDI-ODI ratio narrowing at a pace not seen in recent years, the central bank's next annual census will be closely watched for signs of whether this trend represents a structural shift or a one-year spike driven by large-ticket corporate transactions.