India FDI-ODI Ratio Falls to 4.2 Times as Indian Companies Invest More Overseas

Indian businesses are putting more money into overseas markets. Their investments abroad grew 40.8% in FY26, much faster than the growth in foreign investment coming into India.  

This has brought the gap between inward and outward investment closer. The FDI-to-ODI ratio stood at 4.2 times at the end of March 2026, compared with 5.5 times a year earlier, according to the RBI's latest data. 

Indian Companies Invest More Abroad 

Indian companies' overseas investments reached ₹16.71 lakh crore by March 2026. A year earlier, the figure stood at ₹11.87 lakh crore.  

Foreign direct investment into India also increased, but at a slower pace. Outstanding inward FDI rose to ₹70.72 lakh crore from ₹65.17 lakh crore during the same period. 

In dollar terms, inward FDI was valued at $747.13 billion, while Indian companies' overseas investments stood at $176.59 billion. 

Unlisted Companies Account for Most FDI Debt 

The RBI's census covered 43,123 Indian entities that reported foreign direct investment or overseas direct investment. Of these, 41,814 were unlisted companies, accounting for around 97% of the total.  

Unlisted companies held 97.9% of FDI equity at face value and 96.6% of outstanding FDI debt. However, when equity was measured at market value, listed and unlisted companies had almost equal shares. 

US Continues to Lead as FDI Source 

The United States remained the biggest source of foreign investment in India, accounting for 16.5% of outstanding FDI at the end of March 2026.  

Mauritius was next with 14.5%, followed by Singapore at 13.7% and the United Kingdom at 10.8%. 

Singapore, the UAE and the US together accounted for more than half of India's total overseas direct investment. 

Manufacturing Gets the Largest Share 

Manufacturing continued to attract the biggest share of foreign equity investment. It accounted for 50.1% of outstanding FDI equity at market value. Services followed with a 45% share.  

The RBI also noted an 11.9% year-on-year increase in other investment liabilities of Indian entities with unrelated foreign parties. These include trade credit, loans, currency and deposits. 

Read More: Valor Estate Share Price Declines Over 5% as Q2FY27 Net Profit Falls 15.9%! 

Conclusion 

The RBI figures show that Indian companies are expanding their investments overseas at a faster pace. The US remains the largest source of foreign investment into India, while manufacturing continues to account for the biggest share of FDI equity. 

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