The global financial crisis has resulted in a sharp decline in overseas investment by Indian business in 2009-10.
India’s actual outward foreign direct investment (FDI) in joint ventures and subsidiaries was down by 36.7 per cent to $10.3 billion in 2009-10 compared to $ 16.28 billion a year ago.
During the reporting period, while the investment financed through loans registered a growth over the previous year, investments financed through equity declined sharply, according to a Reserve Bank of India study.
While the economic climate has begun to show signs of recovery in recent months to support investments, the actual flows in the fourth quarter (January-March 2010) was lower than in the same period last year. Investment stood at US$ 1.9 billion, showing a decline of 52.7 per cent over the corresponding quarter of the previous year.
