India’s foreign investment fell by 33 percent
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India: India’s foreign investment in other countries fell to $ 1.21 billion in August, which is 33.3 percent less than the figure of $ 1.82 billion recorded in July. Reserve Bank of India data for the current financial year also shows a significant decline in outward investment compared to August 2022. India invested $9.76 billion abroad in August 2022.
India’s foreign investment increased in June after two consecutive months of decline. India’s foreign investment in other countries stood at $1.8 billion in July 2023, which is 73 percent more than the $1.07 billion recorded in June.
Bankers said that, when we talk about outbound foreign direct investment i.e. India’s investment in other countries is mainly in three parts – equity, debt and guarantee. Recently there has been a slowdown in economic and business activities especially in developed countries and this has affected outward investment flows as well as inflows into India.
India’s equity commitments for August 2023 increased marginally to $45.23 billion in August compared to July ($45.46 billion), but, if we look at August 2022, it is much lower than the month’s $7.71 billion.
In August, loan commitments fell to $26.93 million from $60.75 million in July. In August 2022, this figure was around $1.38 billion.