Amid austerity calls to conserve hard currency, regulatory authorities are scrutinising whether India Inc's overseas direct investments (ODI) have gone into "bona fide businesses." The RBI's foreign exchange department is asking companies to explain the intent and rationale behind investments, the governance structure of overseas entities, and future plans, according to a person aware of the development. The sharp rise in ODI outflows has raised questions over the use of funds. Total annual ODI outflows - comprising equity, loans and invoked guarantees - rose from $14.5 billion in FY24 to $27 billion in FY26. Singapore, the US and the UAE are among the top ODI destinations.