India Inc. Abroad: RBI’s August 2026 Outward Investment Data
Oct 22, 2026 · @Prashant Ajmera
Indian businesses committed USD 3.84 billion to overseas joint ventures and subsidiaries in August 2026, 33.5% less than July but 23.3% more than August 2025, and guarantees, not cash, made up most of it.
Guarantees, not cash, drove the month
Guarantees were 58.2% of August’s USD 3.84 billion, against 29.7% for equity and 12.1% for loans. A guarantee is a promise to back a foreign subsidiary’s obligations, so it counts as a commitment but is not cash leaving India that month.
| Component | Aug 2026 (USD mn) | Share | vs Jul 2026 | vs Aug 2025 |
| Equity | 1,140.5 | 29.7% | -44.5% | +7.3% |
| Loan | 464.2 | 12.1% | -47.2% | -45.1% |
| Guarantee | 2,235.3 | 58.2% | -21.3% | +85.3% |
| Total | 3,840.0 | 100% | -33.5% | +23.3% |
Only 39 of the 927 transactions involved a guarantee. Four of them made up 81.6% of all guarantee value: Solar Industries India (USD 795.0 million), Jindal Power (USD 514.8 million), Tata Communications (USD 288.8 million) and Owens Corning (India) (USD 225.0 million).
What does “guarantee issued” mean?
A guarantee issued is a promise by an Indian company to back the obligations of its overseas joint venture or subsidiary, usually a loan from a foreign lender. If the overseas entity cannot pay, the Indian parent must step in. No cash leaves India when the guarantee is issued, so it is a contingent commitment, not a transfer of money. The RBI still counts it as part of the overseas financial commitment, alongside equity and loans, which is why it uses up the same investment limit.
Where the money went
Five destinations took 82.4% of the value, yet the USA and UAE had far more transactions than any of them.
| Destination | Total (USD mn) | Share | Transactions | of which equity (USD mn) |
| Mauritius | 1,391.1 | 36.2% | 10 | 6.7 |
| Netherlands | 706.6 | 18.4% | 10 | 257.2 |
| United Kingdom | 412.7 | 10.7% | 51 | 98.4 |
| Singapore | 398.4 | 10.4% | 93 | 326.7 |
| USA | 254.1 | 6.6% | 244 | 177.2 |
| UAE | 124.0 | 3.2% | 200 | 77.7 |
| Australia | 101.0 | 2.6% | 15 | 2.3 |
| Saudi Arabia | 93.7 | 2.4% | 22 | 0.8 |
| British Virgin Islands | 68.8 | 1.8% | 4 | 1.0 |
| IFSC GIFT City | 48.5 | 1.3% | 39 | 9.3 |
Mauritius is first only because of two guarantees, Solar Industries India and Jindal Power, which make up 94% of its USD 1,391.1 million. For actual equity, Singapore led (USD 326.7 million across 93 transactions), followed by the Netherlands (USD 257.2 million) and the USA (USD 177.2 million). The USA (244) and the UAE (200) recorded the most transactions, and GIFT City drew 39 worth USD 48.5 million. In all, 79 destinations appear in the data. Each is the first overseas entity, not necessarily the final market, because holding structures sit in between.
Sectors and deal sizes
Manufacturing led with 28.3% of the value, while financial and business services had the most transactions (399). The sector is RBI’s label for the overseas entity’s main activity, not the Indian company’s own industry.
| Sector of overseas entity | Total (USD mn) | Share | Transactions | Equity (USD mn) | Guarantees (USD mn) |
| Manufacturing | 1,086.9 | 28.3% | 152 | 238.9 | 814.7 |
| Financial, insurance and business services | 722.7 | 18.8% | 399 | 334.4 | 303.3 |
| Agriculture and mining | 576.1 | 15.0% | 28 | 373.0 | 158.4 |
| Electricity, gas and water | 524.7 | 13.7% | 10 | 1.1 | 516.2 |
| Transport, storage and communication | 504.7 | 13.1% | 42 | 63.6 | 317.1 |
| Construction | 216.5 | 5.6% | 40 | 27.9 | 86.1 |
| Wholesale, retail, restaurants and hotels | 168.6 | 4.4% | 210 | 87.8 | 16.9 |
| Miscellaneous | 22.5 | 0.6% | 2 | 1.0 | 21.5 |
| Community, social and personal services | 17.2 | 0.4% | 44 | 12.9 | 1.0 |
Outbound India runs at two speeds. The ten largest Indian companies account for 70.8% of the month (USD 2,719.0 million), and six transactions of USD 100 million or more made up 61.9% of the value. At the other end, 759 of 927 transactions (81.9%) were under USD 1 million and together carried only 2.3% of the value. The median transaction was USD 50,000, and 726 transactions were equity-only.
Wholly owned subsidiaries accounted for 638 transactions and USD 3,402.4 million (88.6%). Joint ventures accounted for 289 transactions and USD 437.6 million (11.4%).
The ten biggest commitments
The ten largest Indian companies accounted for USD 2,719.0 million, or 70.8% of August’s total, and six of them included a guarantee.
| # | Indian company | Overseas entity | Country | Commitment | Total (USD mn) |
| 1 | Solar Industries India Ltd | Solar Overseas Mauritius Ltd | Mauritius | Guarantee 795.0 | 795.0 |
| 2 | Jindal Power Ltd | Jindal Power (Mauritius) Ltd | Mauritius | Guarantee 514.8, loan 7.4 | 522.2 |
| 3 | Bharat PetroResources Ltd | BPRL International BV | Netherlands | Equity 250.0, guarantee 154.5 | 404.5 |
| 4 | Tata Communications Ltd | Tata Communications Netherlands BV | Netherlands | Guarantee 288.8 | 288.8 |
| 5 | Owens Corning (India) Pvt Ltd | Project Spindle IHC UK2 Ltd | United Kingdom | Guarantee 225.0 | 225.0 |
| 6 | Tata Steel Ltd | T Steel Holdings Pte Ltd | Singapore | Equity 140.0 | 140.0 |
| 7 | Adani Ports and SEZ Ltd | NQXT Port Pty Ltd | Australia | Loan 98.2 | 98.2 |
| 8 | Nazara Technologies Ltd | Nazara Technologies UK Ltd | United Kingdom | Equity 33.9, loan 57.4 | 91.2 |
| 9 | KEC International Ltd | Al Sharif Group and KEC Ltd Company (JV) | Saudi Arabia | Guarantee 81.7 | 81.7 |
| 10 | Sindhu Trade Links Ltd | Advent Coal Resources Pte Ltd (JV) | Singapore | Equity 72.4 | 72.4 |
Names and amounts are as reported by authorised dealer banks to the RBI. They are commitments, not confirmation that funds have moved, and listing a company here implies nothing beyond what the RBI data shows.
What it means for businesses going abroad
A guarantee for a foreign subsidiary counts as an overseas financial commitment, just as equity and loans do, so it needs the same planning. Four practical points follow from August’s data:
- Count guarantees in the limit. Under the FEMA (Overseas Investment) Rules, 2022, an Indian entity’s financial commitment under the automatic route is generally capped at 400% of its net worth, and guarantees form part of that commitment.
- Report every transaction. Each investment is reported through the authorised dealer bank, and reporting obligations continue after the first remittance, including for small deals.
- Plan the holding structure early. Mauritius, the Netherlands, Singapore and now GIFT City (39 transactions this month) each carry different tax, treaty and compliance consequences that are far cheaper to settle before investing than after.
- Small deals are covered too. With a median transaction of USD 50,000, many outbound investors are SMEs and start-ups, and the same rules apply to them as to the large groups.
This is general information, not legal advice. Check the current rules and your own facts before acting.
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The author of this article is Mr. Prashant Ajmera, an Indian immigration lawyer and Canadian citizen. He is the founder of Ajmera Law International and the author of two books, “Millionaires On The Book” and “How to Plan for Your Child’s Foreign Education.” Over the past 30 years, he has assisted and advised over 30,000 students and families on planning their foreign education and settlement. He regularly speaks at various forums on this subject.
Ajmera Law International: Mo: +91 9974253030 | info@ajmeralaw.com | www.ajmeralaw.com
