Indian companies’ investments into their overseas subsidiaries/joint ventures have dropped by 63% to $1.17 billion in May 2018 as compared to $3.12 billion in May 2017. According to RBI data, in April 2018, the outward foreign direct investment (OFDI) of Indian firms was $3.56 billion. Cumulatively, the overseas direct investment in first two months (April-May) of this fiscal stood at $4.73 billion.
As per the data, of the total investment by domestic firms in overseas ventures in the month under review, $374.18 million was in the form of equity infusion, $162.96 million in loan and $630.45 million as guarantee issuances. Among the major companies that made investment in their overseas subsidiaries/joint ventures included Indiabulls Real Estate $368.09 million, ONGC $57.94 million, Tata Hitachi Construction Machinery $26.62 million and Wadhawan Global Captial $15.23 million.
Besides, Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek recently had said that foreign direct investment (FDI) in the country witnessed a growth during 2017-18 to reach at $61.96 billion. India’s FDI inflows dropped to $40 billion in 2017 as compared to $44 billion in 2016. It also indicated that in South Asia, FDI inflows contracted by 4% to $52 billion, due to a fall in inflows to India.