Singapore appeared to be the preferred investment destination for Indian firms

Indian businesses invested over 82.5 percent of their total investments abroad.

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.

The Dollar Business Bureau - Jan 23, 2017 12:00 IST
 
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