India Inc snaps up $29.3 bn worth overseas assets this fiscal

Outward foreign direct investment from the country, which was on slippery road during the past two fiscals, has seen some signs of recovery in the current fiscal with the total deal value touching $29.34 billion so far, says a report.

"The period between FY07 and FY11 has been buoyant at times for outward FDI investments, but there has been a slowdown since then. Investments declined in FY12 and FY13, but there has been a recovery in FY14 so far," Care Ratings said in a report.

Total FDI investments made by domestic companies between April-January of FY14 stood at $29.34 billion, the report said.

The declining trend in outward FDI started from FY11 when it stood at $19.25 billion to $11.18 billion in FY12, and to $7.13 billion in FY13.

The rating agency said after moderate FDI investment between FY03 and FY04, investments started gradually increasing because of the relaxations in overseas investment policy in 2004.

Outward investments by domestic companies picked up significantly since FY07 and peaked in FY09 with investment of $19.45 billion abroad, it said.

FDI is divided into three categories--equity, loans and guarantee issued. Most of the investments are made in the form of guarantee issued followed by equity, and lastly in the form of loans.

Out of the total investments made in the April-January period of FY14, $19.12 billion were guarantee issued, which accounted for 65.1%, Care said.

During the period, investment in equity and loans stood at $7.1 billion and $3.21 billion with a share of 23.9% and 11%, respectively.