Indian Investment Abroad - Overseas Direct Investment by Indian Companies

Overview

Last updated: Feb, 2026

Introduction

In recent times, India's presence overseas for investment has increased due to the growing ambition of Indian businesses as well as their globalisation. Gradually, there have been more opportunities for Indian businesses to grow through overseas direct investment (ODI), and have been caused by improved balance sheets, increased global connections, and competitiveness across all sectors. Many Indian businesses have actively sought out opportunities for international business to develop new sources of revenue, gain access to advanced technology, develop supply chains, and expand into high-growth and strategic areas.

The way in which India has evolved over the last few decades into an important source of foreign investment globally through outbound investments demonstrates how India has changed from a country that is mainly importing capital to now being one of the biggest contributors to global investment. There is also increased diversity in the sectors in which Indian companies are investing, as well as a wider geographic area being targeted and increased focus placed on acquiring companies or developing new businesses from scratch; all these trends signify India’s evolution into becoming a country that is contributing significantly to the growth of the global economy.

Market Size

For December 2025, ODI stood at Rs. 33,761 crore (US$ 3.75 billion). Of the total amount invested, Rs. 12160 crore (US$ 1.35 billion) was in the form of issuance of a guarantee, Rs. 4,717 crore (US$ 524 million) was of loans, and Rs. 16,884 crore (US$ 1.87 billion) was infused in the form of equity. Additionally, from October 2025 to December 2025, Singapore was the top investment destination with Rs. 12,826 crore (US$ 1.42 billion). This was followed by USA accounting for Rs. 6,121 crore (US$ 680 million) and United Arab Emirates with Rs. 4,512 crore (US$ 501 million) investments.

Investments/Developments

India’s growth momentum is largely anchored in domestic consumption and investment, which together account for a substantial share of overall economic activity. With the economy expected to remain among the world’s fastest-growing in FY 2025–26, supported by resilient demand conditions and continued public capital spending, Indian enterprises are operating from a position of strength. A stable macroeconomic environment and proactive policy support have enabled companies to look beyond domestic markets and pursue overseas expansion. 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. 33,761 crore (US$ 3.75 billion) in December 2025.
As per the Reserve Bank of India (RBI), outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals stood at Rs. 17,157 crore (US$ 1.93 billion) in November 2025. During 2025-26 (till November 2025), cumulative outward remittances under the LRS reached Rs. 16,97,920 crore (US$ 19.10 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 174 APAs signed in 2024-25, this initiative helps Indian multinationals avoid double taxation, strengthen compliance, and operate more confidently in global markets.
September 23, 2025, marked a milestone in India’s overseas defence manufacturing footprint with the inauguration of Tata Advanced Systems Limited’s state-of-the-art armoured vehicle production facility in Berrechid, Morocco. Spread over 20,000 square metres, the facility will manufacture the indigenously developed WhAP 8×8 platform for the Royal Moroccan Army, with production already underway and scope for future exports.
Infosys expanded its footprint in the Nordic region with the inauguration of two new offices in Almhult and Helsingborg, Sweden, strengthening its proximity to regional clients across manufacturing, logistics, and retail sectors. The new centres will support customers in building advanced digital systems by leveraging Infosys Topaz and Infosys Cobalt, enabling AI-led transformation, cloud adoption, and innovation-led growth.
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.
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).
July 12, 2025, marked Wheels India Limited’s expansion into Europe with a capital infusion into its wholly owned subsidiary, WIL Europe GmbH, incorporated in Germany. The subsidiary will operate as a 100% owned entity, with the investment undertaken on an arm’s length basis and subject to regulatory approvals in India and Germany.
Tata Motors has re-entered South Africa’s passenger vehicle market after a six-year hiatus, launching three SUV ranges and a compact hatchback to compete with Chinese automakers.
January 20, 2025, marked the inauguration of Tata Consultancy Services’ (TCS) new delivery centre in Toulouse, France, strengthening its presence in one of Europe’s key aerospace hubs. Strategically located near Toulouse Airport, the centre will leverage advanced technologies such as artificial intelligence, generative AI, machine learning, and data analytics to support aerospace, manufacturing, and defence clients across Europe.

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 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 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:

India–Oman Comprehensive Economic Partnership Agreement (CEPA) establishing a comprehensive framework covering trade in goods and services, investment, professional mobility, and regulatory cooperation. The agreement grants 100% duty-free market access for Indian exports across 98.08% of Omani tariff lines, covering 99.38% of export value, with benefits effective from Day One. The CEPA is expected to boost exports across engineering goods, pharmaceuticals, agriculture and processed food, marine products, textiles, chemicals, electronics, plastics, and gems & jewellery, while adopting a calibrated liberalisation approach to protect sensitive sectors, support MSMEs, and promote employment-led growth.
India–New Zealand Free Trade Agreement (FTA) was concluded in December 2025, making it one of India’s fastest-negotiated FTAs. The agreement provides duty-free access on 100% of Indian exports to New Zealand and includes a US$ 20 billion investment commitment over 15 years, while safeguarding India’s sensitive sectors such as dairy and agriculture. It delivers major gains for labour-intensive sectors, including textiles and leather, introduces New Zealand’s first-ever Annex on Health and Traditional Medicine Services, and creates new student mobility and skilled visa pathways, including opportunities for up to 5,000 Indian professionals.
The Italy–India Business Forum 2025 was held in Mumbai on 11 December 2025 during the visit of Italy’s Deputy Prime Minister Antonio Tajani, marking a key milestone in strengthening bilateral economic ties. The Forum focused on expanding trade, enhancing supply-chain resilience, and deepening cooperation across sectors such as automotive, clean energy, agri-food, sports technologies, and connectivity.
India deepened its trade engagement with Latin America with the successful conclusion of the 9th round of India–Peru Trade Agreement negotiations in Lima (November 3–5, 2025) and the 3rd round of India–Chile Comprehensive Economic Partnership Agreement (CEPA) negotiations in Santiago (October 27–30, 2025). The discussions recorded substantive progress across key chapters, including trade in goods and services, rules of origin, investment promotion, technical and sanitary measures, intellectual property rights, dispute settlement, and critical minerals, reinforcing India’s strategic focus on expanding market access, strengthening supply chain resilience, and deepening economic integration with the Latin American region.
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 outward investment momentum is expected to remain firm as domestic enterprises increasingly pursue global scale, market diversification, and access to advanced capabilities. The composition of overseas direct investment, spanning equity infusions, guarantees, and overseas lending, highlights a balanced and risk-calibrated approach to international expansion. Continued interest in established investment destinations such as Singapore, the United States, and the United Arab Emirates reflects India Inc.’s focus on stable regulatory environments, strategic market access, and integration with global value chains. Supported by sustained domestic growth, policy continuity, and improving ease of doing business, Indian companies are well placed to expand their overseas footprint, deepen cross-border partnerships, and strengthen their role in the global investment landscape going forward.

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 December 2025 is Rs.1 = US$ 0.011111

References: Media Reports and Press Releases, Press Information Bureau (PIB), Reserve Bank of India (RBI), Economic Times, PwC