Outward FDI Commitments Plummet 49% in May as Indian Companies Slow Global Investments
India's outward foreign direct investment commitments experienced a significant slowdown in May, declining by 49.02 per cent month-on-month to reach $4.49 billion. This drop reflects reductions across various commitment types, including equity investments, loans, and guarantees issued by Indian entities abroad, according to data released by the Reserve Bank of India (RBI).While the overall commitments saw a sharp decline on a MoM basis, the financial commitment component demonstrated resilience. Total financial commitments made by Indian entities in overseas investment increased 34.6 per cent year-on-year in May 2026, reaching $3.34 billion.
Sharp Decline in Equity Investments Abroad
The equity investment segment faced the most substantial reduction. Equity investments abroad fell sharply to $1,247.82 million in May from $3,537.35 million in April, marking a decline of approximately 64.72 per cent. This trend highlights a temporary cooling in aggressive overseas equity deployment by Indian firms.In the competitive equity investment space, RBI data noted commitments made by major entities. These included Indovida India investing $673.2074 million abroad, Tata International providing $130 million, Arvind Advanced Materials committing $58 million, and ONGC Videsh Rovuma contributing $31.09 million.
Overseas Loans and Guarantees Show Mixed Trends
Overseas loans extended by Indian companies also recorded a decrease in May. The amount fell to $632.12 million, down from $1,299.69 million in April.Guarantees issued formed the largest component of commitments but still saw a month-on-month contraction. Guarantees fell to $2,608.83 million in May from $3,999.79 million in April, representing a decline of around 35 per cent. However, it is important to note that this figure marked an increase compared to the $1,122.37 million recorded in May 2025.
Financial Commitments Rise Year-on-Year Amid Sectoral Slowdown
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