<p>Outflow of foreign direct investment (FDI) from India plunged 87 per cent to $1.21 billion in August as compared to $9.76 billion recorded in the same month last year, as per data released by the Reserve Bank of India on Thursday.</p>.<p>The slowdown in economic and business activities, especially in the advanced economies, have hit both inbound and outbound investments.</p>.<p>The dip in India’s outbound investments in August was largely due to a sharp drop in equity investments. The equity investments by Indian firms in overseas markets dropped to $454.56 million in August from $7.714 billion recorded in the same month last year, posting a year-on-year decline of 94.10 per cent.</p>.FDI equity inflows dip 34% to $10.94 billion in April-June 2023.<p>There are three components of outward foreign direct investments: equity, loan and guarantee issued.</p>.<p>There was a sharp drop in all these segments. Outward flow of loan from India to overseas markets dipped from $1.38 billion in August 2022 to $269.27 million in August 2023. Guarantee issued declined to $494.96 million in August 2023 from $672.86 million recorded in the same month last year, Overseas Direct Investment for August 2023 released by the RBI showed.</p>.<p>The outward FDI also fell sharply sequentially. The August figure is 33 per cent lower when compared with $1.82 billion recorded in July 2023. Though there was a marginal increase in equity flow on a month-on-month basis, the other two components, loan and guarantee issued, registered a sharp drop.</p>.<p>The outward equity flow stood at $452.30 million in July. It increased marginally to $454.56 million in August. However, the outflow of money from India in the form of loans declined to $269.27 million in August from $607.51 million in the previous month. The amount of guarantee issued declined to $494.96 million during the month under review from $769.06 million recorded in the previous month.</p>.<p>The global economic slowdown has hit outflows as well as inflows of FDI in India. As per the latest data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflows in India dipped by 34 per cent to $10.9 billion in April-June quarter of the current financial year. There was a sharp drop in FDI equity inflows from all the major sources – Mauritius, UAE, Singapore and the United States.</p>.<p>Cumulative outflow of overseas direct investment from India between April 2000 to July 2023 stood at $288.92 billion, as per the Department of Economic Affairs data. Out of these, $188.19 billion is equity investments, while $94.03 billion are in the form of loans.</p>.<p>Singapore is the largest recipient of FDI outflows from India. It accounts for 19 per cent of the total cumulative outflows between April 2000 to July 2023. Mauritius is the second largest recipient with 14 per cent share in overall outflow. The United States, Netherlands, the United Kingdom and the United Arab Emirates are the other major destinations for the outflows of FDI from India.</p>
<p>Outflow of foreign direct investment (FDI) from India plunged 87 per cent to $1.21 billion in August as compared to $9.76 billion recorded in the same month last year, as per data released by the Reserve Bank of India on Thursday.</p>.<p>The slowdown in economic and business activities, especially in the advanced economies, have hit both inbound and outbound investments.</p>.<p>The dip in India’s outbound investments in August was largely due to a sharp drop in equity investments. The equity investments by Indian firms in overseas markets dropped to $454.56 million in August from $7.714 billion recorded in the same month last year, posting a year-on-year decline of 94.10 per cent.</p>.FDI equity inflows dip 34% to $10.94 billion in April-June 2023.<p>There are three components of outward foreign direct investments: equity, loan and guarantee issued.</p>.<p>There was a sharp drop in all these segments. Outward flow of loan from India to overseas markets dipped from $1.38 billion in August 2022 to $269.27 million in August 2023. Guarantee issued declined to $494.96 million in August 2023 from $672.86 million recorded in the same month last year, Overseas Direct Investment for August 2023 released by the RBI showed.</p>.<p>The outward FDI also fell sharply sequentially. The August figure is 33 per cent lower when compared with $1.82 billion recorded in July 2023. Though there was a marginal increase in equity flow on a month-on-month basis, the other two components, loan and guarantee issued, registered a sharp drop.</p>.<p>The outward equity flow stood at $452.30 million in July. It increased marginally to $454.56 million in August. However, the outflow of money from India in the form of loans declined to $269.27 million in August from $607.51 million in the previous month. The amount of guarantee issued declined to $494.96 million during the month under review from $769.06 million recorded in the previous month.</p>.<p>The global economic slowdown has hit outflows as well as inflows of FDI in India. As per the latest data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflows in India dipped by 34 per cent to $10.9 billion in April-June quarter of the current financial year. There was a sharp drop in FDI equity inflows from all the major sources – Mauritius, UAE, Singapore and the United States.</p>.<p>Cumulative outflow of overseas direct investment from India between April 2000 to July 2023 stood at $288.92 billion, as per the Department of Economic Affairs data. Out of these, $188.19 billion is equity investments, while $94.03 billion are in the form of loans.</p>.<p>Singapore is the largest recipient of FDI outflows from India. It accounts for 19 per cent of the total cumulative outflows between April 2000 to July 2023. Mauritius is the second largest recipient with 14 per cent share in overall outflow. The United States, Netherlands, the United Kingdom and the United Arab Emirates are the other major destinations for the outflows of FDI from India.</p>