Overseas investments fell in Aug as US tariffs kicked in

India’s overseas direct investment (ODI) declined by almost 50 per cent in August this year to $1 billion compared to previous month as well as in the corresponding month last year, according to the finance ministry data.

- RUCHIKA CHITRAVANSHI

Experts have said that the dip in August could be due to the uncertainty in the global economic scenario after the US tariffs.

The actual ODI outflows during April-August FY26 grew by 29 per cent compared to the same period last year to $10.2 billion, according to the data.

“With uncertainties in the global environment and the US tariffs coming into effect, companies are preferring to reduce risk by investing in the country itself,” said Madan Sabnavis, chief economist, Bank of India.