Archive · 1 Sep 2025
India's FDI Growth Outpaces Global Average; CAD Deficit Narrowed
India is investing more money in other countries than ever before.
Over the past five years, India's investments abroad have grown much faster than the rest of the world's.
In 2024, India's outward investments reached a new high.
Singapore, the U.S., and the UAE are popular destinations for these investments.
India's current account, which measures how much money it spends versus earns from other countries, had a small deficit in Q1 FY26 after a surplus the prior quarter.
This deficit was smaller than expected, partly because Indians working abroad sent more money home.
While exports might decrease due to tariffs, overall trade is expected to stay moderate.
India's outward FDI has grown at 12.6% CAGR over the last 5 years, outpacing the global average.
In 2024, India's outward FDI reached $23.8 billion.
Singapore, the United States, and the UAE are top destinations for Indian outward FDI.
India's Q1 FY26 current account deficit was 0.2% of GDP.
Remittances increased by 18% year-over-year in Q1 FY26.
- Who
- India, Bank of Baroda, ICRA
- What
- India's outward FDI growth and current account deficit (CAD) changes
- When
- Outward FDI growth over the last 5 years; Q1 FY26 and Q4 FY25
- Where
- India and its global investment landscape
- Why
- To assess India's investment position and CAD status
- Outward FDI Growth
- India's CAGR: 12.6% (last 5 years), World's: 3.9%
- 2024 Outward FDI
- $23.8 billion
- Top FDI Destinations
- Singapore (25%), U.S., UAE
- Q1 FY26 CAD
- Deficit of 0.2% of GDP
- Q4 FY25 CAD
- Surplus of 1.3% of GDP
- Q1 FY26 CAD Value
- $2.4 billion deficit
- Remittances
- Increased 18% y-o-y in Q1 FY26
