Indian firms cut overseas investments by 14%

Overseas Indian firm investments fell by 14% in September 2026, according to Reserve Bank of India data. Total outward foreign direct investment commitments reached $4,344.33 million during the month. This figure represents a decline compared to the $5,049.32 million recorded in September 2025, as the central bank noted a reduction in loan and guarantee commitments.

Loan commitments reached $549.16 million in September 2026, marking a 44.03% decrease from $981.17 million in September 2025. Guarantees issued by firms also fell by 64.19% to $528.21 million from $1,475.01 million in the same period last year. These two categories contributed to the overall monthly decline in total outward commitments.

Equity commitments rose to $3,266.96 million in September 2026, compared to $2,593.14 million in September 2025. This represents a 25.98% increase on an annual basis. However, these equity figures were 20.43% lower than the $4,105.59 million recorded in August 2026. Total commitments for August 2026 stood at $6,873.34 million, according to the central bank report. The data highlights the shifting trends across different types of investment instruments used by Indian firms for their international operations during the third quarter of the calendar year.

Based on company and agency reports. For information only; not investment advice.