Indian companies’ overseas foreign direct investments (FDI) surged by a robust 17% to $37.7 billion in 2024 from $32.29 billion the previous year, reflecting the country’s corporate sector’s growing strength in undertaking foreign ventures.
FDI equity investments, loans, and guarantees issued to foreign firms saw substantial growth, with equity investments rising by 40% to $12.69 billion in 2024 from $9.08 billion in 2023. Under the loan category, OFDI by Indian companies increased to $8.7 billion in 2024, up from $4.76 billion the previous year. However, guarantees issued by Indian firms to foreign entities, including their own subsidiaries, decreased to $16.29 billion in 2024 compared to $18.44 billion in 2023.
Larsen and Toubro (L&T), a construction and engineering giant, made the largest overseas investment by an Indian company in 2024 with a $2.4 billion investment in its Saudi Arabia subsidiary, L&T Hydrocarbon Saudi Company, in February. The company secured a $4 billion order from Saudi’s state-owned Aramco for the gas company’s expansion projects in FY24.
L&T’s power transmission and distribution arm received “mega” orders valued between Rs 10,000 to Rs 15,000 crore to expand and strengthen electricity grids in Saudi Arabia and the United Arab Emirates. These orders include ±500kV HVDC transmission links, two 380kV overhead transmission lines, a 380kV Gas Insulated Substation in Saudi Arabia, and two 400kV Gas Insulated Substations in the UAE.
The second-largest foreign investment was made by Bharat Petroleum’s wholly-owned subsidiary Bharat PetroResources, which issued $669 million in guarantees in August for its international arm in the Netherlands, BRPL International. Bharat PetroResources is engaged in oil and gas exploration and production abroad, including developing a large hydrocarbon field in Brazil.
Other significant deals in 2024 included a $629 million equity investment by healthcare technology company Sagility India in its US-based subsidiary, Sagility (US) Holding. Adani Ports and SEZ issued a $385 million guarantee towards its joint venture in Israel, Mediterranean International Ports ADGD, and Tata Steel provided a $440 million loan to T Steel Holdings Singapore.
Indian companies have invested in countries such as Singapore, the US, the UK, Saudi Arabia, the UAE, Oman, and Malaysia.
