Rapid Fire
India's Outward FDI Trends
- 29 Apr 2024
- 1 min read
India's outward foreign direct investment (OFDI) experienced a notable decline of 39% to USD 28.64 billion in the fiscal year ending March 2024, reflecting the impact of uncertain global economic conditions.
- The decline is primarily attributed to reduced commitments in both equity and loan routes. The decrease in overseas acquisitions by Indian firms also played a role in this decline.
- However, March 2024 witnessed a surge in outward FDI, reaching USD 3.92 billion, with equity commitments at USD 2.03 billion, the highest for the year.
- This rebound indicates potential opportunities emerging amidst the challenging global economic landscape, highlighting the dynamic nature of India's outward FDI trends.
- Outward direct investment is a business strategy where a company based in one country (home country) invests in a business entity (foreign affiliate) located in another country (host country).
- This investment goes beyond simply buying stocks or bonds; it involves establishing a controlling interest or significant influence in the foreign company.
Read more: India's Outward and Inward Investment Trends
