Indian Firms Accelerate Global Expansion: surged 27.5% in March to $7 billion

• India’s outward FDI rose 27.5% year-on-year to $7.06 billion in March, with sharp month-on-month growth.

• FY26 overseas investments climbed to $48.6 billion, reflecting sustained global expansion.

• Equity flows showed mixed trends; loans declined annually.

• Guarantees surged to $4.91 billion, driving overall growth.

• Tata Motors, Reliance, and other major firms led overseas commitments.

Indian companies stepped up their international investment activity in March, pushing outward foreign direct investment (FDI) commitments significantly higher compared to both the previous month and the same period last year.

Figures released by the Reserve Bank of India (RBI) show that total overseas financial commitments reached $7.06 billion in March, marking a 27.5 percent increase over the $5.54 billion recorded in March of the previous year. On a month-on-month basis, the rise was even more pronounced, with commitments jumping from $2.96 billion in February.

Outward FDI is calculated as total financial commitment, which includes three components: equity investments, loans, and corporate guarantees issued to overseas subsidiaries and joint ventures.

Equity Commitments Show Mixed Trend

Equity investments abroad moderated on a year-on-year basis. Indian firms committed $1.46 billion in equity in March, down from $2.56 billion in the same month last year. However, compared to February 2026, when equity commitments stood at $1.15 billion, the March figure reflects renewed momentum.

Despite the softer annual comparison in equity flows, the broader trend in overseas expansion remains positive. For the full financial year 2025–26 (FY26), outbound FDI rose to $48.6 billion, up from $43.7 billion in FY25, underscoring sustained appetite among Indian companies for global growth opportunities.

Loan Component Eases, Guarantees Surge

The debt portion of overseas commitments — comprising loans extended to foreign units — declined year-on-year. Loans totaled $691.95 million in March, substantially lower than the $1.52 billion recorded a year earlier. On a sequential basis, however, the figure was slightly below February’s $741.16 million.

The most striking development in March was the sharp rise in guarantees extended to overseas subsidiaries. Guarantees soared to $4.91 billion, more than tripling from $1.45 billion in March last year and rising sharply from $1.078 billion in February. The spike in guarantees played a pivotal role in driving the overall increase in outbound commitments for the month.

Major Corporate Commitments Drive Growth

Several large Indian corporations accounted for significant overseas guarantees and funding commitments during the month.

Tata Motors emerged as a major contributor, issuing guarantees worth $2.26 billion for its Singapore-based wholly owned subsidiary, TML CV Holdings. Reliance Industries committed $250 million in guarantees to its UAE-based arm, Reliance International. Renew Treasury IFSC Private extended $660 million in guarantees to its wholly owned subsidiary operating from IFSC GIFT City.

Other notable commitments included Jindal Power, which extended $558.25 million in guarantees along with $20 million in debt to its Mauritius-based subsidiary. Rolta India provided $450 million in guarantees for its wholly owned US subsidiary.

In terms of loan financing, Superform Chemistries committed $100 million in debt to its Mauritius-based unit. Lloyds Metals and Energy allocated $68.80 million in loans to its UAE subsidiary, while Patanjali Ayurved extended $34.8 million in debt to its UAE-based arm.

Strong Annual Momentum

The steady rise in overseas financial commitments over FY26 highlights the increasing global footprint of Indian enterprises. While equity and loan components displayed mixed trends, the sharp escalation in guarantees indicates growing strategic support for international subsidiaries.

With outbound FDI crossing $48 billion for the financial year, Indian firms appear to be reinforcing their global ambitions, positioning themselves for deeper integration into international markets.