India's Outbound FDI Slows to $4.41 Billion in September 2025: RBI Data

India’s outward foreign direct investment (FDI) recorded a marginal decline year-on-year to $4.41 billion in September 2025, compared to $4.81 billion in the same month last year, according to data released by the Reserve Bank of India (RBI). 

Despite the slight annual dip, outbound investment showed strong momentum sequentially, rising sharply from $2.59 billion in August 2025, signalling renewed corporate activity in overseas markets.

Surge in Equity Commitments, Fall in Guarantees

Outbound FDI, which includes equity, loans, and guarantees, saw mixed trends across segments. Equity commitments surged nearly threefold to $2.57 billion in September from $828.1 million a year ago and were also higher than the $1 billion recorded in August.

Debt-related investments (loans) declined to $952.3 million from $1.21 billion in September last year, though they improved substantially from $551.2 million in August. Meanwhile, guarantees dropped sharply to $892.4 million, compared to $2.76 billion in the same month last year and $1.04 billion in August 2025.

Key Corporate Investments Abroad

Several major Indian companies made sizeable commitments to their overseas entities during the month. Prime Focus Ltd infused $348.71 million in equity into its joint venture, DNEG, based in Luxembourg. Intas Pharmaceuticals extended $213.03 million in loans to its wholly owned subsidiary, Accord Plasma B.V., in the Netherlands. 

Zydus Wellness issued guarantees worth $355.76 million for its UK-based subsidiary. Zydus Medtech committed $253.33 million in funding to its French subsidiary.

Read More: Indian Railways Records 56% Capex Utilisation by September 2025.

Conclusion

While India’s outward FDI dipped slightly year-on-year, the sharp rebound from August reflects rising investor confidence and renewed expansion by Indian corporates overseas. The surge in equity investments, led by prominent pharmaceutical and technology firms, highlights the continued internationalisation of Indian businesses despite global economic headwinds.

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