India's outward FDI nosedives to $2.25 billion in December: RBI data

India’s outward foreign direct investment (FDI) commitments fell sharply to $2.25 billion in December 2023, compared to over $4.12 billion in December 2022. Sequentially, they were also down from $4.0 billion in November 2023, according to Reserve Bank of India (RBI) data.

Outbound FDI, expressed as a financial commitment, comprises three components: equity, loans, and guarantees. The equity commitments declined to $646.7 million in December 2023 from $1.38 billion in December 2022. It was also significantly lower than the $1.09 billion recorded in November 2023.

Debt commitments decreased to $625.91 million in December 2023, down from $1.15 billion a year ago. However, it was higher than $190.05 million in November 2023. Guarantees for overseas units declined to $978.19 million in December 2023 from $1.58 billion in December 2022. They were down substantially compared to $2.72 billion in November, RBI data showed.