A new report on ”Safeguarding Indian Investments abroad from Expropriation” jointly authored by the Centre for Domestic Economy Policy Research (C-DEP.in) and the Centre for WTO Studies, Ministry of Commerce reveals that Indian companies investing outside of India are increasingly exposed to risks of their investment being endangered through expropriation, leading to loss of large amount of Indian capital. The report titled “Safeguarding Indian Investments Abroad from Expropriation” was released today at IIT Delhi by Shri Anil Sharma, Akhil Bhartiya Seh Sampark Pramukh, Swadeshi Jagran Manch and Dr. Pritam Banerjee, Head, Centre for World Trade Organization Studies, Ministry of Commerce. India’s outward FDI has been rising steadily, with Indian firms investing USD 29.2 billion overseas in FY 2024–25 (RBI data). Indian companies have started investing aggressively in foreign jurisdictions in order to secure India’s supply chains. As Indian enterprises expand into sectors such as energy, construction, metals, telecommunications, and digital infrastructure, their exposure to political and regulatory risks in host countries have grown sharply. Recent cases documented in the report show that over USD 10 billion worth of Indian investments abroad faced active or potential expropriation-related threats. This amount will grow in future as the Indian economy rapidly rises from being the fourth to the third largest economy in the world, in the next few years. One of the recent instances of investment expropriation has been that of Sterlite Technologies Limited (STL). STL had invested USD 100 million in the USA, to establish an optical fibre manufacturing unit in 2022. The retrospective application of the amendment in the Build America, Buy America (BABA) Act rendered the investment commercially unviable, effectively nullifying STL’s ability to operate the plant. “Such cases highlight a pattern of unilateral actions by host governments, ranging from regulatory overreach and retrospective measures to administrative obstruction, that collectively amount to investment expropriation,” the report states. Speaking at the launch, Shri Anil Sharma of the Swadeshi Jagran Manch emphasised that “Indian missions abroad must build adequate capacity to address instances of investment expropriation. These risks should also be factored into India’s negotiations on trade and investment agreements.” He reiterated SJM’s long-standing position of safeguarding Indian industry and ensuring that national interests are protected in India’s global economic engagement. Dr. Pritam Banerjee, Head, Centre for WTO Studies, underscored the need for a dedicated institutional architecture and said “India should have a specialised, umbrella agency for promoting and supporting trade and investment abroad. Countries like Korea have KOTRA, which plays a decisive role in helping their companies expand overseas. India needs an equivalent mechanism to protect and facilitate its global commercial footprint.” Dr. Jaijit Bhattacharya, President, C-DEP, noted that “We are at a turning point where Indian companies are fast expanding overseas. The industry will gain confidence only when it knows that risks of expropriation are minimised through structured government support.” Key Policy Recommendations of the report The report recommends establishing a dedicated government body to systematically monitor, assess, and respond to expropriation risks faced by Indian companies abroad, supported by specialised political-risk and expropriation insurance to safeguard Indian capital. It further calls for strengthening Indian embassies and missions with legal, commercial, and dispute-resolution expertise to assist companies facing hostile regulatory actions, along with creating a rapid-response coordination mechanism within the Government of India to intervene early in critical cases and ensure timely support for affected investors. As India deepens its global economic presence, the protection of Indian investments abroad becomes central to strategic economic security. The report offers a timely foundation for building a stronger institutional and diplomatic shield for Indian investors operating in foreign jurisdictions. The complete report can be accessed from https://c-dep.in/reports/ or by scanning the QR code below: (Disclaimer: The above content is a press release and PTI takes no editorial responsibility for the same.). PTI