India's Outward FDI Rises to $6.8 Billion in April, RBI Data Shows
| 2025-05-14
India’s outward foreign direct investment (FDI) commitments surged to $6.8 billion in April 2025, nearly doubling from the same month last year, according to newly released data from the Reserve Bank of India (RBI).
India’s foreign investment abroad nearly doubles year-on-year, led by equity and guarantees
India’s outward foreign direct investment (FDI) commitments surged to $6.8 billion in April 2025, nearly doubling from the same month last year, according to newly released data from the Reserve Bank of India (RBI).
The increase represents a significant rise from the $3.58 billion recorded in April 2024 and marks a 15% growth from $5.9 billion in March 2025, indicating heightened international expansion activity by Indian businesses.
Sharp rise in equity and guarantees
According to the RBI’s Foreign Exchange Department, the surge in outward FDI was driven primarily by increased equity investments and guarantees issued for overseas subsidiaries and ventures.
Equity commitments rose sharply to $2.72 billion in April 2025, a notable increase from $740 million in the same period a year earlier, and slightly up from $2.53 billion the previous month. The data suggest Indian firms are increasingly favouring ownership stakes in foreign ventures as a mode of international growth.
Financial guarantees also experienced a significant jump, reaching $2.98 billion in April. This is more than double the $1.23 billion reported in March and well above the $2.16 billion issued in April 2024. Guarantees often reflect a parent company’s support for its foreign affiliates in securing loans or other financial obligations.
Loan commitments ease
While equity and guarantee figures surged, loan commitments declined to $1.16 billion in April from $2.12 billion in March 2025. However, they remained higher than the $687 million reported in April last year. This reduction may signal a cautious approach by Indian firms towards direct lending, possibly in favour of more stable or lower-risk investment instruments.
Data remains provisional
The RBI clarified that the figures are provisional and based on data submitted by authorised dealer banks as of 7 May 2025. These may be subject to revision as more information becomes available.
“The data is provisional and based on reports submitted by authorised dealer banks as of May 7, 2025. It may change slightly as banks continue to update their reporting,” the central bank stated.
What is outward FDI?
Outward foreign direct investment (OFDI) refers to capital outflows from domestic firms to establish or expand operations in foreign markets. These investments typically take the form of equity, loans, or guarantees provided to foreign subsidiaries, joint ventures, or newly acquired companies abroad.
For India, a country with a growing number of globally active conglomerates and startups, outward FDI is a measure of international business confidence and ambition. It also reflects the ability of Indian firms to compete in global markets and diversify their revenue streams.
Context: India’s growing global footprint
India’s increasing outward investment comes amid efforts by domestic firms to tap into international markets, driven by globalisation, market diversification, and the need to access new technologies or consumer bases. The country has seen consistent outbound FDI flows in recent years, with fluctuations largely influenced by global economic conditions and sector-specific trends.
The April 2025 data reflect the highest monthly outbound investment figure recorded in over a year. Analysts suggest that the increase could be linked to strategic investments by Indian multinational companies, particularly in sectors such as information technology, pharmaceuticals, manufacturing, and financial services.
As India continues to promote international trade and investment partnerships, the growth in outward FDI may play a key role in shaping its long-term economic strategy.
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