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GlossaryITXWhat is ODI (Overseas Direct Investment)?
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What is ODI (Overseas Direct Investment)?

Overseas Direct Investment (ODI) is investment by an Indian entity in the equity or control of a foreign entity, governed by the FEMA Overseas Investment Rules 2022.

Bare Law Reference: FEM (Overseas Investment) Rules and Regulations, 2022.

Detailed Explanation

How it works

It is reported in Form FC through an authorised dealer bank, a Unique Identification Number is allotted, and an Annual Performance Report (APR) is filed by 31 December.

Frequently asked questions

What is ODI?

Investment by an Indian entity in a foreign entity's equity or control, under the FEMA 2022 framework.

What reporting does ODI need?

Form FC at investment and an Annual Performance Report (APR) by 31 December each year.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • ODI is Indian investment in a foreign entity.
  • Reported via Form FC; UIN allotted.
  • APR filed by 31 December.
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