India Outward FDI Drops to $2.76 Billion in February Amid Lower Equity Investments: RBI Data

India’s overseas investment activity witnessed a slowdown in February 2026, reflecting moderation in financial commitments by domestic companies.  

The latest data highlights a decline in outward foreign direct investment both compared to last year and the previous month. 

Decline in Outward FDI and Key Components 

Total outward FDI stood at $2.76 billion in February 2026, significantly lower than $4.30 billion recorded in the same month last year. On a sequential basis as well, the figure declined from around $3.60 billion reported in January 2026. 

Outward investment is typically divided into three components, namely equity, loans, and guarantees. Among these, equity commitments saw the sharpest reduction, falling to $1.11 billion from $2.61 billion a year ago and also dropping from $1.71 billion in January. 

Loan commitments stood at $714.30 million, showing a decline compared to the previous year, although higher than the levels seen in the preceding month.  

 Meanwhile, guarantees issued amounted to $936.93 million, reflecting a marginal increase year-on-year but a notable decline from January levels. 

Corporate Investment Activity 

Despite the overall slowdown, several Indian companies continued to make overseas financial commitments.  

 Anupam Rasayan India Limited extended guarantees worth $200 million to its joint venture in Luxembourg and an additional $25 million to its wholly owned subsidiary in the same jurisdiction. 

 Power Finance Corporation Limited committed $44.24 million as equity investment into its subsidiary based in GIFT City. In the real estate sector, Sunteck Realty Limited provided guarantees of $21.25 million to its overseas subsidiary in Mauritius.  

 Additionally, Oil India Limited extended loans amounting to $21.15 million to its subsidiary operating in Mozambique. 

Trend Analysis and Implications 

The moderation in outward FDI appears largely driven by reduced equity participation, even as other components showed mixed movement. While loans saw some improvement on a month-on-month basis, guarantees declined compared to the previous month. 

The data indicates that although Indian firms remain active in international markets, the scale of fresh equity commitments has softened in the near term. 

 Read More: Government Targets Universal Health Insurance Coverage by 2033, Says Finance Minister! 

Conclusion 

The drop in outward FDI during February reflects a cautious approach by Indian companies in deploying capital overseas, with lower equity investments weighing on overall financial commitments. 

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