India's Outward FDI Commitments Fall Nearly 49% to $4.49 Billion in May 2026: RBI Data

India's outward foreign direct investment (OFDI) commitments witnessed a sharp decline in May compared to the previous month, according to data released by the Reserve Bank of India (RBI). 

The decline was driven by lower equity investments, loans, and guarantees extended by Indian entities to their overseas ventures. 

OFDI Commitments Decline To $4.49 Billion In May 

RBI data showed that total financial commitments by Indian entities stood at $4.49 billion in May. 

This represents a decline of nearly 49% from $8.84 billion recorded in April 2026. However, the figure remained higher than the $3.34 billion reported in May 2025. 

Equity Investments and Loans Also Fall 

Equity commitments declined to $1.25 billion in May from $3.54 billion in April. 

Loans extended to overseas ventures also decreased to $632.1 million from $1.30 billion during the same period. Compared to May 2025, equity investments increased while loans declined. 

Guarantees Remain Largest Component Despite Monthly Decline 

Guarantees issued by Indian entities declined to $2.61 billion in May from $4.00 billion in April.  

However, they remained the largest component of overseas financial commitments during the month and were more than double the $1.12 billion recorded in the corresponding month last year.  

Equity investments and loans followed guarantees in terms of contribution, indicating that Indian companies continue to rely significantly on guarantee-based support for their overseas ventures. 

RBI Framework Covers 3 Components 

Under the RBI's overseas investment framework, financial commitments comprise equity investments, loans, and guarantees extended by Indian entities to their overseas joint ventures and wholly owned subsidiaries. 

These commitments are used to track overseas investment activity by Indian businesses. 

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Conclusion 

The RBI data showed that India's outward FDI commitments stood at $4.49 billion in May, compared to $8.84 billion in April. The decline was primarily driven by lower guarantees, equity investments, and loans extended by Indian entities to overseas ventures. 

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