India Inc's FDI outflow dips 36% in fiscal 2010

India Inc's FDI outflow  dips 36% in fiscal 2010

During the 2008-09 fiscal, the amount of investment by domestic companies in overseas joint ventures and wholly-owned subsidiaries was over US$16.2 billion. The country’s outward FDI showed a bigger decline of 52.7 per cent for the January-March quarter of fiscal year 2010 at US$1.9 billion, as against US$4.1 billion over the same period of 2008-09.

“During 2009-10, the actual outward FDI in joint ventures and wholly-owned subsidiaries stood at US$10.3 billion, which was 36.5 per cent lower than the investment made during the previous year,” RBI said.

Total investments

While manufacturing accounted for 43.1 per cent of the total investments by domestic companies, finance, insurance real estate and business services attracted 28.1 per cent outward investment from the country. The apex bank said during the past fiscal the share of equity in the total outward FDI financing decreased whereas the share of loans increased compared to 2008-09.

While equity (minus that of individuals and banks) accounted for over 64 per cent (over US$6.6 billion) of the total outward FDI, loans accounted for about 35.6 per cent (over US$3.6 billion). In 2008-09, the share of equity financing was 81 per cent and loans stood at 19 per cent.

In terms of destinations, Singapore, Mauritius, the Netherlands, the US and the British Virgin Islands accounted for 67 per cent of total outward FDI.

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