Overseas direct investment by Indian companies sees a downward trend
Overseas direct investment by Indian companies stood at $ 1.59 billion in May 2014, down 39.3 % from a year ago. The RBI data on ‘Outward FDI from India’ mentioned some figures about these investments. The overseas foreign direct investment (FDI) by companies was at $ 2.62 billion in May 2013. The Indian companies had made financial commitment to the tune of $ 5.58 billion in April 2014. The overseas FDI during May 2014 consisted of $ 155.69 million from equity, $ 182.59 million from loan and $ 1.26 billion were through issuance of guarantees.
Maharashtra Seamless, Emcure Pharmaceuticals, Graphite India, Inox India, Scrabble Entertainment, Welspun Corp Ltdand Simplex Infrastructure were among the major investors overseas in May 2014.
Girish Vanvari, Co-Head of Tax, KPMG India feels that this downward trend is primarily due to two reasons. Firstly, the Indian companies are going through humungous the financial stress over the last year due to the political uncertainly, slowing down of economy and policy bottlenecks forcing many projects to go standstill. The investors were cautious and did not want to get into non-profit assets. Secondly the weakening of the Indian rupee also played a vital role making the overseas acquisitions expensive
Maharashtra Seamless, Emcure Pharmaceuticals, Graphite India, Inox India, Scrabble Entertainment, Welspun Corp Ltd and Simplex Infrastructure were among the major investors overseas in May 2014.
Emcure Pharmaceuticals made a total investment of $ 29.21 million in two separate slots in its wholly owned units in the UK and the US. Simplex Infrastructures had commited to pay $ 18.7 million in a joint venture in Oman and Welspun invested $ 16.84 million in its joint venture in Mauritius. Other major investors included Gitanjali Gems ($ 15.5 million), Glenmark Pharmaceuticals ($ 15.58 million), IL&FS Transportation Networks ($ 11.75 million), and Oil India Ltd ($ 9.55 million).
Source- The Economic Times
FDI during May 2014 consisted of $ 155.69 million from equity, foreign direct investment (FDI) by companies was at $ 2.62 billion in May 2013, India's overseas investment in May down 39 percent, Indian companies stood at $ 1.59 billion in May 2014
