Indian Companies’ Overseas Investments Surge 41% to ₹16.71 Lakh Crore, UAE Emerges as Major Destination

The outstanding value of overseas direct investments by Indian companies and other domestic entities increased by 40.8 percent during the financial year 2025–26, reaching ₹16.71 lakh crore at the end of March 2026, according to the Reserve Bank of India (RBI). The increase of approximately ₹4.85 lakh crore from ₹11.87 lakh crore a year earlier reflects the expanding international investment exposure of Indian businesses, with Singapore, the United Arab Emirates and the United States emerging as the three largest destinations.

The findings were released by the RBI on November 6 as part of its provisional Census on Foreign Liabilities and Assets of Indian Direct Investment Entities for 2025–26. The data reveal a particularly significant increase in Indian investments in the UAE, where the outstanding value more than doubled to ₹2.71 lakh crore. The expansion was driven primarily by a substantial rise in debt investments, highlighting an important change in the composition of India’s overseas investment holdings.

Overseas Investment Stock Records 40.8 Percent Growth

According to the RBI, the market value of India’s outstanding overseas direct investment increased from ₹11,86,744 crore at the end of March 2025 to ₹16,71,463 crore at the end of March 2026. The increase of ₹4,84,719 crore represents year-on-year growth of approximately 40.8 percent, demonstrating a substantial expansion in the value of Indian entities’ international investment positions.

Equity investments accounted for the largest component of overseas holdings, increasing from ₹10.09 lakh crore to ₹13.30 lakh crore during the financial year. Debt investments recorded an even sharper increase, rising from ₹1.77 lakh crore to ₹3.41 lakh crore. The expansion of both components contributed to the overall increase in India’s overseas direct investment stock.

In US dollar terms, the outstanding value of overseas direct investment increased from $138.67 billion in March 2025 to $176.59 billion in March 2026. This represents growth of approximately 27.3 percent, compared with the 40.8 percent increase recorded in rupee terms.

The difference reflects the influence of currency valuation on cross-border investment statistics. The RBI has clarified that changes in outstanding investment values include movements in market prices and exchange rates, meaning that the increase should not be interpreted entirely as fresh investment flows during the financial year.

UAE Emerges as One of India’s Largest Overseas Investment Destinations

The United Arab Emirates recorded one of the most striking increases in Indian investment exposure during FY2025–26. According to the RBI’s country-wise data, the outstanding value of Indian direct investments in the UAE increased from ₹1,04,236 crore in March 2025 to ₹2,71,107 crore in March 2026.

The increase of approximately ₹1.67 lakh crore represents growth of around 160 percent, making the UAE the second-largest destination for India’s outstanding overseas direct investment. Its share of India’s total overseas investment stock reached 16.2 percent, behind Singapore’s 21.1 percent.

The expansion was driven overwhelmingly by debt investments, which increased from ₹17,644 crore to ₹1,52,778 crore during the year. Equity investments also rose, increasing from ₹86,593 crore to ₹1,18,329 crore, although their contribution to the overall increase was considerably smaller.

The sharp increase in debt exposure suggests that financing arrangements involving Indian direct investors and their overseas enterprises have become an increasingly important component of the investment relationship with the UAE. The RBI’s data establish the scale and composition of these investments, although they do not identify individual corporate transactions responsible for the increase.

The development adds an important dimension to the expanding economic relationship between India and the UAE. The two countries maintain substantial commercial, financial and investment linkages, supported by their Comprehensive Economic Partnership Agreement and growing cooperation across multiple sectors.

Singapore Retains Position as India’s Largest Overseas Investment Destination

Singapore remained the leading destination for Indian overseas direct investment, with outstanding holdings increasing from ₹2.57 lakh crore in March 2025 to ₹3.53 lakh crore in March 2026. The country accounted for 21.1 percent of India’s total overseas direct investment stock, maintaining its position as an important international investment centre for Indian businesses.

The United States ranked third, with Indian investment exposure rising from ₹1.75 lakh crore to ₹2.32 lakh crore, representing 13.9 percent of the total. The United Kingdom followed with ₹2.08 lakh crore, while the Netherlands accounted for ₹1.37 lakh crore and Mauritius for ₹1.33 lakh crore.

Together, Singapore, the UAE and the United States accounted for approximately 51.2 percent of India’s total outstanding overseas direct investment. Their combined position highlights the concentration of Indian international investment exposure in major financial and commercial centres.

The distribution also illustrates the geographical diversity of Indian businesses’ international investment relationships. Alongside established destinations such as Singapore, the United States and the United Kingdom, the substantial increase in UAE exposure reflects the growing importance of West Asia within India’s overseas investment landscape.

India’s Outward Investments Grow Faster Than Inward FDI

The RBI census also revealed that India’s outstanding overseas direct investment grew considerably faster than the stock of foreign direct investment held by overseas investors in India.

The market value of inward foreign direct investment increased from ₹65.17 lakh crore at the end of March 2025 to ₹70.72 lakh crore in March 2026, representing growth of 8.5 percent. During the same period, outward direct investment expanded by 40.8 percent, narrowing the difference between the two investment positions.

Consequently, the ratio of inward foreign direct investment to outward direct investment declined from 5.5 times in March 2025 to 4.2 times in March 2026. The change indicates that the outstanding value of Indian entities’ investments abroad expanded more rapidly than foreign investors’ direct investment holdings in India during the financial year.

The United States remained the largest source of outstanding foreign direct investment in India, accounting for 16.5 percent of the total. Mauritius followed with 14.5 percent, Singapore with 13.7 percent and the United Kingdom with 10.8 percent.

Manufacturing accounted for the largest share of outstanding inward FDI equity at market value, representing approximately 50.1 percent, followed by the services sector with 45 percent. These figures demonstrate the continued importance of industrial production and services in attracting international investment into the Indian economy.

Increasing Role of Debt in Overseas Investment

One of the most significant findings of the RBI census is the increase in the debt component of India’s overseas direct investment. Total outward debt investments rose from ₹1,77,254 crore in March 2025 to ₹3,41,008 crore in March 2026, an increase of approximately 92.4 percent.

This expansion was considerably faster than the growth in outward equity investments, which increased by approximately 31.8 percent. As a result, debt accounted for a larger proportion of India’s outstanding overseas direct investment stock at the end of FY2025–26.

The UAE was the principal contributor to this change, accounting for approximately ₹1.35 lakh crore of the ₹1.64 lakh crore increase in outward debt investment. This indicates that a substantial part of the overall rise in India’s international debt investment exposure was concentrated in a single major destination.

Debt investments within overseas direct investment relationships can include financing extended by Indian investors to foreign enterprises with which they maintain direct investment links. Such arrangements provide companies with mechanisms to support overseas operations, investment activities and corporate financing requirements.

The RBI’s findings demonstrate the growing importance of these financial relationships in India’s international investment position. They also highlight why the composition of overseas investment is important when examining international corporate expansion, as equity holdings and debt exposure represent different forms of financial commitment.

Indian Businesses Expand Their International Investment Footprint

The increase in overseas direct investment reflects the growing international financial exposure of Indian companies and other investing entities. As Indian businesses participate in overseas markets, their international investments can encompass ownership stakes in foreign enterprises, subsidiaries, joint ventures and financing arrangements associated with direct investment relationships.

International investment enables companies to establish commercial operations, participate in overseas supply chains, access technology and develop relationships with customers and business partners in different markets. The expansion of overseas investment holdings demonstrates the increasing scale of these cross-border corporate relationships.

The geographical distribution identified by the RBI highlights the importance of international financial centres and major commercial economies in supporting India’s overseas business activities. Singapore continues to occupy the leading position, while the UAE has emerged as an increasingly significant destination within the country’s outward investment portfolio.

India’s expanding international investment presence also complements its wider economic integration through trade agreements, commercial partnerships and cross-border financial relationships. These developments contribute to the growing participation of Indian enterprises in international markets and reinforce the importance of overseas investment within the country’s economic engagement.

RBI Census Provides Comprehensive View of Cross-Border Investments

The RBI’s annual census covers foreign assets and liabilities reported by Indian entities with inward or outward direct investment. The reporting framework includes companies, limited liability partnerships, alternative investment funds and partnership firms, providing a broad assessment of cross-border investment relationships.

The census measures outstanding investment positions at the end of the financial year rather than simply recording transactions completed during that period. As a result, changes in reported values may arise from additional investment, repayments, changes in asset prices and currency exchange-rate movements.

This distinction is particularly important when interpreting the substantial increase in overseas direct investment during FY2025–26. The reported 40.8 percent growth measures the change in the outstanding rupee value of investment holdings and should not be presented as an equivalent increase in fresh capital transferred overseas.

Nevertheless, the figures provide an important indication of the scale, composition and geographical distribution of Indian entities’ overseas investment exposure. They also demonstrate how the relationship between inward and outward direct investment has evolved as Indian businesses expand their international financial interests.

India’s Growing Role in Global Investment Networks

The increase in India’s outstanding overseas direct investment to ₹16.71 lakh crore marks an important development in the country’s international economic engagement. The expansion reflects a substantial increase in the value of Indian entities’ overseas holdings, with equity investments remaining the largest component and debt investments recording particularly rapid growth.

The UAE’s emergence as the second-largest destination represents one of the most notable changes in the investment landscape. Its sharp increase in debt exposure, alongside continued growth in investments in Singapore, the United States and other major economies, illustrates the changing composition and geographical reach of India’s international business relationships.

The RBI’s findings also highlight the growing significance of outward investment relative to foreign direct investment entering India. The narrowing ratio between inward and outward investment stocks indicates a broader evolution in India’s cross-border financial position as domestic enterprises maintain increasingly substantial interests overseas.

With Indian companies expanding their participation in international markets, overseas investment has become an important component of the country’s economic engagement with the world. The latest RBI census provides a detailed statistical picture of this expansion and the growing international presence of India’s corporate sector.

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