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Indian companies' overseas investments rise 40.8% in FY26, narrowing gap with inward FDI

The narrowing FDI-to-ODI ratio shows Indian firms expanding abroad faster than foreign investment is entering India, a shift relevant to trade and investment policy.

Photo: Moneycontrol

What happened

India's overseas direct investment grew 40.8 per cent in rupee terms during 2025-26, according to the Reserve Bank of India's latest census. The Economic Times+2 Inward foreign direct investment grew 8.5 per cent over the same period. The Economic Times+1 The ratio of inward FDI to outward direct investment moderated to 4.2 times at the end of March 2026, from 5.5 times a year earlier. The Economic Times+3 Outward direct investment stock reached Rs 16.71 lakh crore at end-March 2026, up from Rs 11.86 lakh crore a year earlier. angelone.in+1

Around it

Inward FDI stock stood at Rs 70.71 lakh crore at the end of March 2026, compared with Rs 65.17 lakh crore a year earlier. angelone.in+1 The US remained the top source of FDI into India. Moneycontrol

Sources

  1. The Economic TimesIndia's overseas investments grow 40.8 pc in FY26, FDI-ODI ratio narrows to 4.2: RBI
  2. MoneycontrolIndian companies' overseas investments rise 41% in FY26, narrowing gap with inward FDI: RBI- Moneycontrol.com
  3. angelone.inIndia FDI-ODI Ratio Falls to 4.2 Times as Indian Companies Invest More Overseas
  4. webindia123.comIndia's overseas investment rises faster than foreign inflows, inward FDI-to-ODI ratio falls to 4.2: RBI

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