Global Investment Strategies

How Indian companies are redefining global investment strategies

EY
EY India

Multidisciplinary professional services organization

5 minute read 21 Aug 2025
Related topics
Tax
Tax compliance
Tax planning
Global trade

Indian businesses are expanding globally, focusing on sustainability, ESG, regulatory shifts, and new markets like the UAE and GIFT City.

In brief

  • Indian companies are accelerating outbound investments, focusing on diversification, sustainability, and technology-driven global strategies.
  • New destinations like the UAE and Switzerland are gaining traction over traditional hubs due to favorable tax and regulatory frameworks.
  • GIFT City has emerged as a key hub for outbound investments, offering tax advantages and operational efficiency, with a 100% rise in investment flows.

India’s outbound investments surged by 67.74%, reaching US$41.6 billion in FY2024-25, compared to US$24.8 billion in FY2023-24. This increase is highlighted in the EY report titled 'India abroad: Navigating the global landscape for overseas investment-2025,'which underscores the evolving landscape of international business and investment strategies among Indian companies.

A New Era of Global Expansion

As Indian businesses set their sights on global markets, they are increasingly focusing on diversification, sustainability, and technological integration. 

The report reveals that the number of outbound investments has also increased by nearly

Indicating a robust trend toward international expansion across various sectors, including IT/ITES, energy, automotive, pharmaceuticals, and hospitality.

The growing trend of Indian companies venturing beyond traditional investment hubs mark a significant shift in strategy. Historically, jurisdictions like Singapore, the Netherlands, and Mauritius have been favored for outbound investment structuring. However, changing global tax regulations, heightened regulatory scrutiny, and evolving strategic priorities are prompting Indian firms to explore new avenues. Countries such as the UAE, Luxembourg, and Switzerland are emerging as attractive alternatives, offering favorable tax regimes and progressive regulatory frameworks that align with India's interests in sustainability, digital innovation, and trade expansion.

The UAE: A Rising Star

The UAE, in particular, is witnessing a surge in investor interest, moving beyond its traditional role as an energy hub. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has opened new avenues for collaboration, particularly in the infrastructure and technology sectors. This shift is indicative of a broader trend where Indian companies are seeking to establish a presence in markets that offer not only financial incentives but also strategic advantages in terms of operational efficiency and market access.

The Role of ESG in Investment Decisions

Environmental, social, and governance (ESG) considerations are becoming increasingly integral to overseas investment decisions. Companies are now embedding sustainability into their investment designs to meet rising stakeholder expectations and comply with regulatory benchmarks. The report highlights that ESG priorities are no longer optional; they are essential for aligning with global standards and ensuring long-term viability in international markets.

GIFT City: A Strategic Gateway

A key finding from the report is the emergence of Gujarat International Finance Tec-City (GIFT City) as a crucial holding and treasury jurisdiction for outbound investments. Data from the Reserve Bank of India (RBI) indicates a remarkable 100% increase in outbound investments through GIFT City, rising from US$0.04 billion in 2022-23 to US$0.81 billion in 2024-25.1 This cost-effective jurisdiction offers Indian multinationals regulatory clarity, tax advantages, and operational efficiency, enabling them to manage global investments while retaining their place of effective management (POEM) and tax residency in India.

GIFT City’s strategic positioning as a hub for holding and treasury operations is attracting attention from Indian companies looking to enhance their global investment strategies. The regulatory framework and tax benefits provided by GIFT City make it an appealing option for businesses aiming to streamline their international operations.

Navigating Global Policy Developments

The dynamic global policy environment is also influencing Indian companies' strategies for outbound investments. Recent announcements regarding US tariff revisions, scrutiny under OECD BEPS Pillar reforms, and sustainability-linked trade measures are adding layers of complexity to cross-border operations. These developments signal the need for Indian businesses to pivot their outbound direct investment strategies to navigate the evolving regulatory landscape effectively.

How India-based groups are redefining Outbound Direct Investments

In this podcast, explore how Indian MNEs are reshaping ODI strategies amid global shifts, tax reforms, ESG focus, and the rise of GIFT City. 

Know more

Way Ahead

As Indian enterprises navigate the complexities of global investment, the emphasis on sustainability, strategic alignment, and regulatory compliance will be paramount. By embracing these measures, Indian companies can proactively address regulatory complexities, capitalize on international opportunities, and drive long-term sustainable value creation. The future of India’s outbound investment landscape looks promising, with businesses poised to make their mark on the global stage.

 

This article is written by Vaibhav Luthra, Tax Partner, EY India.


Download the full pdf

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Dive deeper into the insights discussed in this article with our EY India Insights podcast. In this episode, Vaibhav Luthra, Tax Partner at EY India, explores the key themes, trends, and actionable strategies shaping the topic in greater detail.

Summary

Indian businesses are rethinking their global investment strategies, moving beyond traditional hubs to embrace new markets and structures. With a sharper focus on ESG, operational efficiency, and regulatory agility, companies are tapping into emerging opportunities that align with evolving global standards. Strategic destinations like the UAE and GIFT City are gaining momentum, reflecting a broader shift in how Indian firms approach international expansion.

How Indian headquartered groups redefying outbound direct investments?

Join Vaibhav Luthra, Tax Partner at EY India, along with his panellists Agneshwar Sen, Trade Policy Leader, EY India, and Raju Kumar, Tax Partner, EY India, as they unpack the rising trend of Outbound Direct Investments (ODI) by Indian-headquartered groups. Drawing from EY’s August 2025 report, “India abroad: Navigating the global landscape for overseas investment”, this episode explores perspectives on the evolving ODI landscape and understand what it means for Indian MNEs venturing abroad.

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    EY
    EY India
    Multidisciplinary professional services organization
    Related topics
    Tax
    Tax compliance
    Tax planning
    Global trade

    EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.