Introduction
India's outbound investments have evolved not only in terms of volume but also in terms of geographic distribution and sectoral makeup. India’s outbound investments rose by 67.74% to US$ 41.6 billion in FY25 from US$ 24.8 billion in FY24, according to EY’s report. The report notes a 15% rise in deal volume, reflecting stronger global confidence as Indian firms expand across IT, energy, pharma, automotive, and hospitality sectors with a focus on diversification and technology-driven growth. Direct investment trends over the past 10 years have been analysed, and while inward and outward investment flows were rather slow in the early half of the decade, they picked up steam in the latter half. In the last decade or so, there has been a noticeable perceptible shift in Overseas Direct Investments (ODI).
In the first half, overseas investments were focused on resource-rich nations like Australia, UAE, and Sudan. In the latter half, OID was directed toward nations offering greater tax advantages, including Mauritius, Singapore, the British Virgin Islands, and the Netherlands. Indian firms invest in foreign shores primarily through mergers and acquisitions (M&A).
A developing nation like India constantly looks for opportunities to invest extensively outside India as it helps the economy. Overseas investments by Indian companies also help to improve the performance of the country's service and manufacturing sectors and aid in the battle against rising unemployment rates. With rising M&A activity, companies will get direct access to newer and more extensive markets and better technologies, enabling them to increase their customer base and achieve a global reach.
Market Size
For September 2025, ODI stood at Rs. 39,165 crore (US$ 4.42 billion). Of the total amount invested, Rs. 7,909 crore (US$ 892.5 million) was in the form of issuance of a guarantee, Rs. 8,439 crore (US$ 952.32 million) was of loans, and Rs. 22,817 crore (US$ 2.57 billion) was infused in the form of equity. Additionally, Singapore was the top investment destination with Rs. 9,163 crore (US$ 1.03 billion). This was followed by Mauritius accounting for Rs. 6,115 crore (US$ 690 million) and United Kingdom with Rs. 4,992 crore (US$ 563.25 million) investments.
Investments/Developments
India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. India continues to hold its position as the fastest-growing major economy, with GDP growth forecasted around 6.3% to 6.5% for fiscal year 2025-26. This robust outlook is underpinned by strong domestic demand and sustained government capital expenditures. Despite major headwinds that continue to pose risks in the short term, the Indian economy has remained strong owing to robust policy measures in place. This gives Indian businesses an advantage to make investments abroad and broaden their operational footprint in such nations. New innovations from abroad would be brought to India with the help of knowledge transfer, and India itself would contribute to the growth of other nations. In this manner, a mutual benefit is achieved. In this context, there have been several overseas investments made by Indian companies. Some of the key overseas investments and developments that have taken place in the recent past are mentioned as follows:
- According to data released by the Reserve Bank of India (RBI), outward foreign direct investment stood at Rs. 39,165 crore (US$ 4.42 billion) in September 2025.
- As per the Reserve Bank of India (RBI), outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals stood at Rs. 2,17,385 crore (US$ 24.53 billion) in July 2025. During 2024-25, cumulative outward remittances under the LRS reached Rs. 26,19,873 crore (US$ 295.63 billion).
- To support India’s growing outbound investments, the government is expanding the use of Bilateral Advance Pricing Agreements (APAs), providing tax certainty for cross-border transactions. With a record 65 APAs signed in 2024-25, this initiative helps Indian multinationals avoid double taxation, strengthen compliance, and operate more confidently in global markets.
- As of August 2025, Deccan Gold Mines Ltd (DGML), India’s first listed gold and critical minerals exploration company, announced progress towards production at its Altyn Tor Gold Project in Kyrgyzstan. The company, through Geomysore, is also set to begin commercial operations at the Jonnagiri gold project in Andhra Pradesh, supporting the Atmanirbhar Bharat initiative.
- In December 2024, Sun Pharma infused equity worth Rs. 6,840 crore (US$ 829 million) into its Netherlands-based subsidiary, marking one of the major outbound transactions of the year.
- In October 2024, Biocon Biologics issued guarantees to its United Kingdom-based joint venture, Biocon Biologics UK Ltd, making it one of the largest UK-bound remittances of the year.
- The Aditya Birla Group has announced a US$ 50 million investment in the establishment of a new manufacturing and research centre in Texas, United States. The facility, located in Beaumont near Houston, will focus on the production of epoxy resins for a variety of consumer and industrial applications.
- In April 2024, Infosys acquired In-Tech, a prominent engineering R&D services provider in the German automotive industry, renowned for its expertise in e-mobility, autonomous driving, and electric vehicles. The acquisition will strengthen Infosys' foothold in Europe and expand its capabilities in digital transformation across automotive, rail transport, and smart industry sectors.
- In April 2024, Hero Motocorp announced the launch of a new assembly facility in Nepal in partnership with CG Motors. The assembly unit can produce up to 75,000 units per year and will bring investments and job opportunities in the region.
- Indian companies are actively seeking to expand their global presence, as evidenced by a nearly 17% increase in outward foreign direct investment (OFDI), which reached Rs. 3,25,631 crore (US$ 37.68 billion) in 2024.
- Adani Group has joined forces with Kowa Company to establish a joint venture focused on the sales and marketing of green hydrogen and its derivatives. The production of these green hydrogen products is slated to take place in India under the umbrella of Adani New Industries Limited, with the Adani Group aiming to commence production by the fiscal year 2027.
- The critical investments are as follows:
- In March 2025, Zydus Lifesciences acquired Amplitude Surgical (France) for Rs. 3,440 crore (US$ 416 million), taking a 100% stake.
- In March 2025, Sun Pharma acquired Checkpoint Therapeutics (United States) for Rs. 3,040 crore (US$ 367 million), taking a 100% stake.
- In 2024, Bharti Enterprises Ltd (Bharti Televentures UK) invested Rs. 33,520 crore (US$ 4.06 billion) in BT Group plc (United Kingdom) through a strategic investment.
- In 2024, Tata Steel Ltd acquired TS Global Holdings Pte Ltd (Singapore) in a strategic acquisition worth Rs. 17,340 crore (US$ 2.10 billion).
- As announced in October 2023; after kicking off work on its US$ 4.5 billion integrated steel project, Indian conglomerate Essar Group is drawing up another round of mega investments in Saudi Arabia, which will see it investing in a port-related project in Ras Al-Khair.
- As announced in September 2023, Mr. Naveen Jindal’s owned Vulcan Green Steel is planning a US$ 3 billion investment in Nigeria where it intends to set up a three-million tonne per annum (MTPA) steel plant.
- In July 2023, Tata Sons Pvt. Ltd. announced plans to establish a global battery cell gigafactory in the UK with a capacity to produce 40GW of cells annually, with an investment of over US$ 4.38 billion (£4 billion).
- As reported in June 2023, Reliance New Energy Ltd., a unit of Reliance Industries Ltd, has topped up its investment in German climate technology company NexWafe GmbH. The announcement came more than a year after NexWafe received a US$ 29 million investment from Reliance New Energy as part of its US$ 45 million Series C funding round.
- Indian conglomerate Essar is eyeing investment in Australia’s Galilee Energy to evaluate potential collaboration on coal seam gas (CSG)-coalbed methane projects in both countries.
Government Initiatives
The government has reduced the restrictions on Indian companies investing overseas by removing the cap on raising funding through the pledge of shares, local assets, and foreign assets in order to encourage international investment. In addition, improving the nation's social and economic stability enables RBI to support foreign investments and other international collaborations. One of the key elements of economic progress in every nation is its robust foreign investments. It demonstrates the confidence and trust that one country has in another and also aids domestic companies to explore better worldwide networks, markets, technology, talents, and resources while enhancing their brand image. In this view, the government has undertaken several steps to support Indian investments abroad. Some of the initiatives are mentioned below:
- The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), effective from October 1, 2025, marks a historic milestone as India’s first Free Trade Agreement (FTA) with four developed European nations, Switzerland, Norway, Iceland, and Liechtenstein. The pact commits Rs. 8,87,100 crore (US$ 100 billion) in investments and one million direct jobs over 15 years, making it the first Indian FTA with binding investment and employment targets.
- In July, 2025, India and the United Kingdom (UK) signed the Comprehensive Economic and Trade Agreement (CETA), eliminating tariffs on 99% of India’s exports and boosting bilateral trade valued at Rs. 4,96,272 (US$ 56 billion), with the goal to double it by 2030.
- On April 16, 2025, Union Minister of Commerce and Industry, Mr. Piyush Goyal, highlighted that the India-Middle East-Europe Economic Corridor (IMEC) will reduce logistics costs by up to 30% and transport time by 40%, positioning India as a trusted bridge of global connectivity.
- On April 2, 2025, India and Australia marked the third anniversary of the Economic Cooperation and Trade Agreement (Ind-Aus ECTA). Since its implementation, bilateral trade between the two countries has grown to Rs. 2,125.18 crore (US$ 24 billion), based on an exchange rate of Rs. 88.62 per US dollar.
- Indian government has declared the investment of Rs. 30 crore (US$ 3.5 million) to support developing countries in improving trade and building capacity, aiming to establish itself as a leader among Global South nations. Efforts will be cantered on people and diverse in approach, with a focus on sharing technology and offering favourable financing for projects.
- India and France are set to launch a collaborative fund supporting startups and climate-centric innovations in the Indo-Pacific. Stemming from the "Horizon 2047" joint vision statement, the Indo-Pacific Triangular Cooperation (IPTDC) fund will drive climate-focused innovations in third countries, aligning with the India-EU Connectivity Partnership.
- The Reserve Bank of India (RBI) issued new guidelines on August 22, 2022, to make foreign investment in shares, immovable properties, etc. easier for Indian retail investors. The new framework/guidelines comprise of Rules (framed by Central Government), Regulations, and Directions (issued by RBI)
- New definition of Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI)
- Overseas Portfolio Investment (OPI) and Overseas Direct Investment (ODI) are two different types of investment routes used by Indian investors to make foreign investments. Under the old regulations/directions, there was no clear distinction between OPI and ODI. Further, OPI was not defined, and under ODI, there was no specific mention of the percentage of equity holding proposed to be bought to qualify as ODI/OPI. Retail Investors faced difficulty in determining whether their investment in foreign entities constituted ODI requiring ODI compliance or OPI.
- The Confederation of British Industry (CBI), Britain’s largest business organisation, and its Indian counterpart, the Confederation of Indian Industry (CII), have agreed to set up a new joint commission to increase cross-industry collaboration and to push the trade deal over the line.
Road Ahead
India’s overseas investment story is moving into a new phase marked by diversification and purpose. Beyond Singapore and Mauritius, Indian companies are exploring new destinations such as the UAE, Luxembourg, and Switzerland, driven by global tax changes and evolving priorities.
The UAE, supported by the India-UAE Comprehensive Economic Partnership Agreement (CEPA), is seeing growing interest in technology and infrastructure. Luxembourg’s strength in fund management and green finance, and Switzerland’s innovation ecosystem, are also drawing investors. At home, GIFT City is emerging as a strong base for outbound investments, which doubled to Rs. 7,178 crore (US$ 810 million) in 2024-25, offering clarity, efficiency, and tax advantages. Sustainability is also shaping how Indian firms expand globally. Environmental, social and governance (ESG) goals are now central to investment decisions as companies respond to new regulations and stakeholder expectations.
With steady domestic growth, active policy reforms, and stronger trade partnerships, India is well placed to lead a more balanced and responsible global investment cycle.
Note: The conversion rate used for October 2025 is Rs.1 = US$ 0.011
References: Media Reports and Press Releases, Press Information Bureau (PIB), Reserve Bank of India (RBI), EY’s report “India abroad: Navigating the global landscape for overseas investment – 2025. Economic Times, PwC
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