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Our Bureau

New Delhi, April 28 India’s outward investment in joint ventures and wholly owned subsidiaries (WOS) stood at $ 11.3 billion in April-December 2008, representing a 15.3 per cent decline over an outward FDI of $ 13.35 billion recorded in the same period in the previous year.

For the quarter October-December 2008, actual outflows stood at $ 5.57 billion, lower than $ 5.68 billion recorded in the same quarter in the previous year, according to the Reserve Bank of India (RBI).

Financing of outward FDI by Indian entities is broadly in the form of equity, loans and guarantee.

Of the total outward investments made in April-December 2008, 79 per cent were in the form of equity ($ 8.95 billion) and 21 per cent were loans ($ 2.35 billion).

Against this, during April-December 2007, 87 per cent of the investments in joint ventures and WOSs were in the form of equity ($ 11.55 billion) and the remaining 13 per cent were loans ($ 1.80 billion).

During April-December 2008, the share of equity has gone down in the outward investments with the amount of equity showing a decline of 22.5 per cent.

In the first nine months of 2008-09 (April-September 2008), 2,828 proposals amounting to $ 16.35 billion were cleared for investments abroad in joint ventures and WOSs.

In the same period during the previous year, 1,595 proposals amounting to $ 18.44 billion were cleared.

While the number of proposals recorded an increase of 77.3 per cent, the magnitude of investment proposals showed a decline of 11.3 per cent.

In April-December 2008, equity accounted for 67.2 per cent of the amount of proposals for investment, followed by loans (18.7 per cent) and guarantees (14.1 per cent).

More Stories on : Overseas Investments | Foreign Direct Investment

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