India Inc overseas direct investment drops 59% to $1.03 bn in Aug: RBI data

India Inc's investment in their overseas ventures dropped by 59 per cent on an annual basis to USD 1.03 billion in August this year, data from Reserve Bank showed on Friday.

The RBI data on Outward Foreign Direct Investment (OFDI) for August 2022 showed that the total financial commitment by the domestic firms was worth USD 1,027.67 million in August, 2022-23.

In the same month of 2021-22, it stood at USD 2,500.97 million (USD 2.5 billion).

In the preceding month of July 2022, Indian businesses' overseas financial investment was USD 1,116.69 million (USD 1.12 billion).

Of the total investment during August this fiscal, the highest was in the form of equity infusion at USD 585.65 million. While USD 266.63 million was infused by way of issuance of guarantees, the rest USD 175.39 million was through loans.

RBI said the data is provisional and subject to change based on online reporting by authorised dealer (AD) banks.

Among the major investors, Lenskart Solutions infused equity worth USD 319.99 million in its wholly-owned subsidiary in Singapore, while Glenmark Pharmaceuticals invested USD 100 million in a fully-owned subsidiary in Switzerland through guarantee issuance.

Hasham Traders Data Stax Inc loaned USD 54.69 million to a joint venture in the US and CitiusTech Healthcare invested USD 30 million in a fully-owned unit in the US through guarantees. Adani Ports and Special Economic Zone invested USD 25.58 million through a mix of loan and guarantee issuance in a wholly-owned unit in Singapore, the RBI data showed.