The ratio of India’s outstanding inward foreign direct investment (FDI) to overseas direct investment (ODI) moderated to 4.2 times at the end of March 2026 from 5.5 times a year earlier, indicating a narrowing gap between foreign investment into the country and Indian entities’ investments overseas, according to the Reserve Bank of India’s (RBI’s) annual census on foreign liabilities and assets (FLA).
The provisional results of the 2025-26 census, released by the central bank on Friday, showed that the United States was the largest source of outstanding FDI in India, accounting for 16.5 per cent of the total, followed by Mauritius (14.5 per cent), Singapore (13.7 per cent) and the United Kingdom (10.8 per cent).
In the case of ODI, Singapore, the United Arab Emirates and the US were the top destinations, together accounting for more than half of Indian entities’ overseas investments.
The census also showed that around 97 per cent of Indian entities reporting FDI and/or ODI were unlisted as of March 2026. These entities also accounted for a major share of total FDI equity capital at face value. Non-financial companies held more than 90 per cent of the FDI equity capital at face value.
In terms of market value, listed and unlisted companies had almost equal shares in total FDI equity capital. However, unlisted companies accounted for 96.6 per cent of outstanding FDI debt.
Other investment liabilities, comprising trade credit, loans, currency and deposits, and other payables to unrelated non-resident entities, grew 11.9 per cent year-on-year in rupee terms as of March 2026. Other investment assets with unrelated non-residents increased 16.1 per cent during the same period.
Sector-wise, manufacturing accounted for the largest share of outstanding FDI equity capital at market value, at 50.1 per cent, followed by services, which accounted for 45 per cent.
The annual census captures cross-border liabilities and assets of Indian entities, including companies, limited liability partnerships, alternative investment funds and partnership firms, with inward or outward direct investment. It covers direct investment, portfolio investment and other investments.
The RBI noted that changes in the outstanding stock of foreign assets and liabilities during a financial year may differ from the flows recorded in India’s balance of payments statistics, as the former also capture valuation changes arising from price and exchange-rate movements.
