Indian firms’ outward investment rises from $14 bn to $24 bn in FY25: Economic Survey

This year's Economic Survey was released on January 29

Even as private investment in India remain muted, the Economic Survey noted an increase in outward investment by firms from $14.4 billion in FY24 to $23.6 billion in FY25, driven by greenfield investments.

Economic Survey 2025-26 states that trends in India’s recent outward investment trajectory reflects its progression along the Investment Development Path, with firms increasingly using overseas ventures to acquire capabilities, strategic assets and access to global production systems.

“Outward investment increased from $14.4 billion in FY24 to $23.6 billion in FY25, driven by greenfield projects,” the Survey noted.

The increase in investments was driven by joint ventures, greenfield projects and acquisitions. Between April-August FY26, Indian companies made investments worth $10.2 billion ,compared to $7.9 billion in the corresponding period last year.

“The persistence of outflows despite global financial uncertainties underscores ongoing internationalisation by Indian enterprises,” CEA V Ananth Nageswaran said.

The survey states that between April 2023-August 2025, nearly 82 percent of cumulative ODI (Overseas Direct Investment) of $48.3 billion was directed to the top ten destination countries of Singapore (27 percent), the United States (16 percent), UAE (10 percent), Mauritius (9 percent) and the Netherlands and the United Kingdom (7 per centeach), reflecting both strategic-asset seeking in advanced markets and the use of international financial hubs.

The survey also pointed out that despite tighter financing conditions and heightened geopolitical uncertainty, FDI inflows to developing economies remained broadly stable at $867 billion (57 percent of global FDI) in CY 2024. Asia continued to be the largest recipient region.