India's outward FDI shrinks by half YoY in June 2023, shows RBI data

India’s outward foreign direct investment (FDI) halved to just below the $ one billion mark in June 2023 from $ 1.93 billion in June 2022. Sequentially also FDI declined from $ 1.29 billion in May 2023.

The outward FDI expressed as total financial commitment has three components – equity, loan and guarantees issued. The commitments (outward FDI) stood at $ 2.44 billion in April 2023, according to Reserve Bank of India data.

The equity commitment was $ 477.11 million in June 2023, slightly higher than $ 406.29 million a year ago. However, it was much lower than $ 779.71 million in May 2023.

As for loans, the commitments declined sharply from $ 498.79 million in June 2022 to $ 221.65 million in June 2023. However, loan commitments were slightly higher over $ 204.48 million.

The guarantees nosedived from $ 1.02 billion in June 2022 to $ 275.15 million in June 2022. They were also down sequentially from $ 309.39 million in May 2022.