India’s outward foreign direct investment (FDI) flows have grown at a sharp pace over the past five years, with a compound annual growth rate (CAGR) of 12.6%, much higher than the global average of 3.9%, according to a Bank of Baroda report.The report, authored by economist Dipanwita Mazumdar, noted that India’s outward FDI touched a record level of $23.8 billion in 2024. It attributed the growth to New Delhi’s push to integrate with the global investment cycle and tap newer markets, ANI reported.Singapore has emerged as the top destination, accounting for 25% of India’s outward FDI since 2015, followed by the US and the UAE, the report said.“In terms of destination country for outward FDI of India, it is more diversified than majority of other countries. Hence it doesn’t pose much immediate risk under the volatile global policy space,” the report observed.The study also placed India’s trends in the broader context of global investment flows. It said the direction and concentration of outward FDI have become crucial at a time when several countries are pledging investments in the US to strengthen trade ties and avoid reciprocal tariffs.Among these, UAE has pledged the highest investment commitments, followed by Qatar and Japan, with flows expected into sectors such as US energy, defence, aviation, auto and technology, the report added.