India's outward foreign direct investment (FDI) rose by 27.5% to $7.06 billion in March 2026, compared to $5.54 billion in March 2025, according to the Reserve Bank of India (RBI). This increase follows a sequential rise from $2.96 billion in February 2026. The total outbound FDI for the financial year 2025-26 reached $48.6 billion, up from $43.7 billion in FY25. The surge in March was largely attributed to a significant rise in guarantees, which soared to $4.91 billion from $1.45 billion a year earlier. Notably, Tata Motors committed $2.26 billion in guarantees for its Singapore-based subsidiary, while Reliance Industries pledged $250 million for its UAE subsidiary. Despite the overall increase in FDI, equity commitments moderated to $1.46 billion in March from $2.56 billion the previous year, although this was higher than $1.15 billion in February 2026. The debt component also saw a decline, dropping to $691.95 million in March from $1.52 billion a year ago, yet it was an increase from $741.16 million in February 2026.