Overseas investment by Indian cos up 59%

Overseas investment by Indian cos up 59%

Outward flows in May, 2010, stood at about $1.39 billion. However, the total outward FDI by Indian firms during the April-May, 2011 period at $5.09 billion, was lower than the $5.98 billion achieved in the corresponding period last year, the Reserve Bank said.

Indian overseas investment policies have been progressively liberalised and simplified to meet the changing needs of a growing economy in a globalised environment.

Even as Indian firms were bullish on overseas investment, inbound foreign direct investment stood at $3.12 billion during the month of April, 2011, as per the latest data from the Industry Ministry, up by about 43 per cent from $2.17 billion in the same month last year.

The RBI data further revealed that outward FDI in 2010-11 stood at $43.92 billion, a huge jump from $17.98 billion in the previous fiscal.

Gammon India Ltd pumped over $1.83 billion into its Panama-based joint venture, Campo Puma Orient SA. Tata Steel invested $514.57 million in its Singapore-based WoS Tata Steel Asia Holdings PTE. Tata Motors, also invested in its joint venture company in Thailand and a WoS in the UK.

Religare Enterprises Ltd made an investment of US$166 million in its US-based WoS, Religare Global Asset Management Inc. Altogether, 418 outward investments were made from the country by various firms during May.

Outward investment stood at $20.94 billion in 2007-08 and $17.16 billion in 2008-09, as per RBI data. It remained subdued at $17.98 billion in 2009-10, before jumping to $43.92 billion in the last fiscal.

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