Outward foreign direct investment (FDI) commitments from India declined 12.14 percent sequentially to $1.88 billion in October, compared to approximately $2.14 billion in September, reflecting slack in global economic development. According to Reserve Bank of India (RBI) data, they will also see more than $2.66 billion in October 2022.
Outbound FDI is expressed as a financial commitment and is made up of three components: equity, loans, and guarantees. A downturn in economic and corporate activity, particularly in developed nations, has hampered both inbound and outbound direct investment flows. The majority of investments (outward FDI) are in subsidiaries or shares in overseas firms. According to bankers, a downturn in developed markets means less prospects.
Inward FDI - international money entering into India - has been sluggish, similar to outbound FDI. According to RBI data, net FDI into India fell drastically to $2.99 billion in April-August 2023-24 (FY24), down from $18.03 billion in April-August 2022-23 (FY23), due to a slowdown in global investment activity and an increase in repatriation.
In terms of outward Foreign Direct Invesments components, equity commitments grew to $865.28 million in October 2023, up from $485.08 million in September 2023 but still much lower than the $1.42 billion reported in October 2022.
Debt commitments fell to $245.81 million in October, from $510.29 million in September and $515.56 billion in October 2022.
Guarantees for overseas units fell from $1.14 billion in September to $774.19 million in October. However, they were marginally higher than the previous year's figure of $721.43 million, according to RBI data.
