India Inc’s overseas direct investment (ODI) in November 2022, at about $3 billion, was the second highest monthly ODI in the current financial year, with equity investment and guarantees issued driving the investment, per RBI data.

The figures likely indicate that after six months of relatively lower average ODI of $1.283 billion, Indian companies have got their mojo back when it comes to overseas investments, finding good assets to invest in amid the global economic slowdown.

Best months

The highest and lowest ODI in FY23 so far, was recorded in April and May at $3.584 billion and $803.32 million, respectively.

However, ODI by India Inc in the first eight months of FY23, at $14.291 billion, is about 40 per cent lower vis-a-vis year ago period’s $23.660 billion.

A break-up of the total financial commitment by India Inc overseas in November 2022 shows that equity capital invested and guarantees issued stood at $1.478 billion and $1.355 billion, respectively. Loans given were at $177 million.

RBI Deputy Governor T Rabi Sankar, in a speech last month, noted that overseas investments by Indian residents seem to have consolidated. “It is hoped that the new rules and regulations governing overseas investments will spur global ambitions of the widely recognised Indian entrepreneurial class,” he said.

What ODI includes

ODI includes acquisition of any unlisted equity capital or subscription as a part of the Memorandum of Association of a foreign entity, or (ii) investment in 10 per cent or more of the paid-up equity capital of a listed foreign entity, or (iii) investment with control where investment is less than 10 per cent of the paid-up equity capital of a listed foreign entity, according to RBI.

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