Indian overseas investments dip 39% in Q1

The gloom of financial crisis continued to overshadow the global business expansion plans of Indian companies in the first quarter of the current financial year (2009-10), with actual investments dropping by 39.4 per cent, to $2.02 billion.

The decline witnessed in India’s outward investment in 2008-09 continued in 2009-10 so far.

Actual outward foreign direct investment (FDI) during April-June 2009 stood at $2.02 billion, down from $3.34 billion in the year-ago period, according to Reserve Bank of India data.

Outflows under equity and loans showed a decline of 38.6 per cent and 42.4 per cent, respectively. Of the total investment amount, 79 per cent was in the form of equity and the remaining 21 per cent was in loans. There was no invocation of guarantee during the period.

During April-June 2008, 78 per cent of the amount of outflows was in the form of equity and the rest was in loans, while there was no invocation of guarantee.