India's Outward FDI Trends | 29 Apr 2024

Source: IE

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.