Singapore appeared to be the preferred investment destination for Indian firms
The Dollar Business Bureau
Overseas Direct Investments made by Indian firms inflated to $2.49 billion in December 2016.This is the first country-wise investment report issued by the RBI. The figures show that investment increased by 32 percent when compared with the same month a year ago.
In December 2016, as stated by RBI’s Outward foreign direct investment report, Indian businesses invested over 82.5 percent (i.e. $2.06 billion) of their total investments abroad.
Apart from Singapore, the other countries where Indian firms preferred to invest are UK ($916.47 million), Mauritius ($899.39 million), the US ($368.76 million), the Netherlands ($262.52 million) and the United Arab Emirates ($89.05 million).
As things stand, Singapore appeared to be the preferred country for investment.
It is also detailed in the report that out of total overseas direct investments made by Indian firms (i.e. $2.49 billion), approximately $1.49 billion was an outflow from the Indian companies holding overseas businesses. The rest came through loans (i.e. $481.76 million), and, $812.91 million through equity infusion by the Indian firms from their overseas ventures.
It has been noticed in the report that the overseas investment by Indian companies was lesser than $747.78 million in November 2016. And, in the following month, the total overseas investments made by Indian firms were increased to $2.49 billion.
The investors mentioned by the report are- Intas Pharmaceuticals and Gail India.
Intas Pharmaceuticals invested $671.82 million in Brazil, Mexico, and the UK, while Gail India invested $115.07 million in two joint ventures and a fully owned subsidiary in Hong Kong, Myanmar, the US, respectively.