Breaking a two-month streak of decline, the outward foreign direct investment (FDI) from India rose sequentially to $1.85 billion in July 2023, up from $1.07 billion in June 2023.
However, it was lower than the $2.18 billion recorded in June 2022, according to data from the Reserve Bank of India (RBI).
The outward FDI, expressed as total financial commitment, has three components: equity, loan, and guarantees issued. The commitments stood at $1.29 billion in May 2023. In April 2023, the outward FDI was $2.52 billion, RBI data showed.
In terms of trend in components, the equity commitment declined to $442 million in July from $488 million in June 2023. There has also been a decline in equity commitment compared to May 2023. It was lower than $629 million in July 2022.
The debt commitment rose to $605 million in July 2023 from $255 million in June 2023. However, it was more than threefold compared to $180 million in July 2022.
The guarantees provided for overseas units grew to $806 million in July 2023 from $329 million in June 2023. However, they were much lower than $1.37 billion in July 2022.
Key deals in July included debt support by Tata Steel of about $361 million provided to Singapore-based ABJI Investment PTE Co Ltd, followed by Tata Chemicals’ guarantees of $160 million provided to its Singapore-based unit, Tata Chemicals International.
First Published: Aug 29 2023 | 4:34 PM IST