How Indian headquartered groups are redefining Outbound Direct Investments

In this episode of India’s Outbound Direct Investments, we analyze the dynamic increase in Outbound Direct Investments (ODI). Vaibhav Luthra, Tax Partner at EY India, who specializes in outbound investments for India-headquartered groups, explains the factors influencing Indian multinational enterprises’ (MNEs) global strategies in today’s scenario.

He also shares insights from the July 2025 report by EY, "India abroad: Navigating the global landscape for overseas investment. He highlights the role of geopolitical shifts and organizations’ quest for new markets as well as securing supply chains. In addition, international tax authorities’ focus on substance, tax efficiencies, and ESG considerations are influencing investment decisions. At the same time, GIFT City in India offers advantages as a hub for treasury operations.

Key highlights

• Geopolitics, need to secure supply chains, and preferential access is pushing Indian companies to diversify, leading to increase in Overseas Direct Investment (ODI).
• Treaty revisions on taxes, pressure from international tax authorities on substance and ESG considerations are prompting a shift to new jurisdictions.
• GIFT City offers financial insurance and treasury benefits to Indian-headquartered groups, enabling effective management in India while enjoying advantages similar to other jurisdictions.

Tune in to understand how Indian businesses are reshaping their outbound investment strategies amid a transforming global environment.