Indian Companies' Outward Investments Jump from $14 Billion to $23.6 Billion in FY25

Indian companies increased their outward direct investment (ODI) to $23.6 billion in FY25 from $14.4 billion in FY24, the Economic Survey 2025-26 said.  

The rise was recorded even as private investment within India remained muted. The Survey linked the trend to India’s stage of development, with firms using overseas projects to access technology, assets and global production systems. 

Greenfield Projects and Acquisitions  

The increase in ODI was driven by greenfield projects, joint ventures and acquisitions. Greenfield investments accounted for a large part of the year-on-year increase.  

The Survey said overseas investments were being used to set up operations abroad and to connect with international value chains. 

Early FY26 Data  

Outward investment remained steady in the first months of FY26. Between April and August FY26, Indian firms invested $10.2 billion overseas, compared with $7.9 billion in the same period a year earlier.  

The Survey noted that outflows continued despite global financial uncertainty, indicating ongoing overseas activity by Indian companies. 

Destination Countries and Concentration of Investment 

Between April 2023 and August 2025, about 82% of cumulative ODI of $48.3 billion was directed to the top ten destination countries. Singapore accounted for 27% of the total, followed by the United States at 16%, the UAE at 10% and Mauritius at 9%.  

The Netherlands and the United Kingdom each received 7%. The Survey said the distribution reflected investments in advanced economies and the use of international financial centres. 

Global FDI Backdrop 

The Survey also said foreign direct investment inflows to developing economies remained broadly stable at $867 billion in calendar year 2024, accounting for 57% of global FDI. Asia continued to be the largest recipient region. 

Read More: India’s Outward Remittances Hit 2-Year Low as Spending on Foreign Studies Slumps! 

Conclusion 

The Economic Survey reported a rise in outward investment by Indian firms in FY25, with greenfield projects and corporate transactions contributing to higher flows, and overseas investment continuing into the early months of FY26. 

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