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India's Outward FDI Surges 17% in July
19 Aug
Summary
- Indian outward FDI climbed to $5.70 billion in July.
- Equity commitments abroad more than doubled from June.
- Loans to overseas subsidiaries also saw a significant increase.
Outward foreign direct investment (FDI) from India demonstrated a robust increase of 17% in July compared to the previous year. Provisional data from the Reserve Bank of India (RBI) indicated that FDI reached $5.70 billion in July, a rise from $4.88 billion a year earlier and significantly higher than June's $3.14 billion.
This growth was driven by a substantial increase in equity commitments, which surged to $2.01 billion in July from $776 million in June. Loans extended to overseas subsidiaries also doubled, rising to $876 million from $433 million a year prior. Guarantees also saw an increase during the month.
Key contributors to the equity outflows included Quest Global Engineering Solutions ($664 million), Aster DM Healthcare ($140 million), and Natco Pharma ($108 million). ONGC Videsh's $407 million transfer to its Singaporean subsidiary was the largest loan disbursement. Quest Global also issued a significant $684 million guarantee to its subsidiary.
