Overseas investments by Indian firms fall

Overseas investments by Indian firms fall

Overseas investment by Indian companies declined sharply to $1.94 billion in August, amid the Reserve Bank tightening norms for outbound investments by the domestic firms to contain rupee slide.

A month ago in July, the Indian firms had invested $3.24 billion in their various entities overseas.

Of the total investment made abroad in August, $1.41 billion was through guarantee issued, $381.37 million via loans and investment of $144.71 million was made through equity.

The RBI in mid-August took sharp measures in a bid to save rupee from a free-fall and put curbs on Indian firms investing abroad besides reducing outward remittances.
Bharti Airtel, Tata Power Company, Financial Technologies, Essar Constructions Overseas and Reliance Industries were among the major investors that invested in their overseas units during the month.

Bharti Airtel invested $186 million in two separte tranches in its joint-venture and wholly owned subsidiaries in the Netherlands and Singapore respectively.

Tata Power Company invested $107.3 million in two separate tranches in its wholly-owned units in Mauritius and Singapore.