India's outward FDI drops to $5.47bn in June

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India's outward FDI drops to $5.47bn in June

Amid persisting global economic uncertainties, foreign investments by Indian companies halved to USD 5.47 billion in June, the month in which Adani group firm Mundra Port and telecom major Bharti collectively committed over USD 2.5 billion overseas.

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Amid persisting global economic uncertainties, foreign investments by Indian companies halved to USD 5.47 billion in June, the month in which Adani group firm Mundra Port and telecom major Bharti collectively committed over USD 2.5 billion overseas.

The latest outward FDI figures come at a time when the domestic economy itself is grappling with slowdown concerns in the midst of high inflation and rising interest rates.

Overseas investments by Indian companies stood at USD 5.47 billion in June, way lower than USD 12.27 billion recorded in the year-ago period, according to data released today by the Reserve Bank of India today.

In the first quarter this fiscal (April-June), outward FDI stood at USD 10.57 billion. This is much lower than USD 18.26 billion recorded in the same quarter of 2010-11.

The RBI data showed that in June Indian firms issued financial guarantees worth USD 3.9 billion, loans worth USD 937 million and contributed USD 641.37 million towards equities.

Adani group's Mundra Port and SEZ extended a guarantee of USD 2.25 billion to its wholly-owned subsidiary Mundra Port PTY Ltd in Australia. The subsidiary is engaged in construction activities, as per RBI data.

Telecom major Bharti Airtel made overseas investments worth USD 494.5 million through three separate deals last month. The total investment was spread across the Netherlands (USD 140 million), Singapore (USD 350 million) and Mauritius (USD 4.5 million).

Other Indian entities who made significant overseas investments include RHC Holding Private Ltd (Mauritius), Suzlon Energy (Mauritius) and Aurbindo Pharma (USA).

The June figures for inward foreign direct investment have not been released yet. FDI inflows saw a whopping 111% increase in May at USD 4.66 billion, the second highest monthly inflows in 11 years.