Reserve Bank of India Releases 2025-26 Foreign Investment Census Results

What was announced

On November 6, 2026, the Reserve Bank of India released provisional findings from its annual census on foreign liabilities and assets for the 2025-26 financial year. A total of 43,123 Indian entities reported foreign direct investment, overseas direct investment, or both by the end of March 2026. Unlisted companies accounted for roughly 97 per cent of these reporting entities and held 96.6 per cent of foreign direct investment debt.

Inward foreign direct investment reached 70,71,945 crore rupees at market value by March 2026, up 8.5 per cent from the previous year. The United States led all source countries with a 16.5 per cent share of total inward investment, followed by Mauritius at 14.5 per cent and Singapore at 13.7 per cent. Outward direct investment from India also expanded, reaching 16,71,463 crore rupees. Singapore was the leading destination for Indian foreign investment, receiving 21.1 per cent of the total, followed by the United Arab Emirates at 16.2 per cent.

What it means

Foreign direct investment happens when an overseas entity takes a lasting ownership stake in a local business, while overseas direct investment refers to domestic entities purchasing foreign assets. The central bank's numbers show that Indian firms are expanding their presence abroad faster than foreign investment in India is growing. As a result, the ratio of incoming direct investment compared to outgoing investment dropped from 5.5 times down to 4.2 times over twelve months.

Factories and commercial services draw the vast majority of foreign interest. Manufacturing accounted for 50.1 per cent of total inward equity capital at market value, while service industries collected 45 per cent. Unlisted private firms continue to handle almost all incoming foreign corporate debt and equity participation at face value, leaving public stock market entries with a minor share of total physical corporate entities in the census.

What the announcement does not tell us

The Reserve Bank of India explicitly notes that variations in annual standing foreign assets and liabilities differ from balance of payments flow statistics because the census includes price and exchange rate changes. However, the release does not explain the exact commercial reasons why Indian companies increased overseas investment relative to incoming capital. It also does not state whether these provisional figures will be revised later or when final census figures will be released.