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India's outward FDI contract in 2009-10
14 July 2010: As per the latest bulletin from the Reserve Bank of India (RBI), Indian Investment Abroad in JVs and Wholly Owned Subsidiaries during last fiscal shrunk by 36.5 per cent to 10.3.
According to the bulletin, during the year investments financed through loans registered a growth over the previous year where as investment financed through equity declined sharply.
For the quarter January to march India's outward investment stood at $1.9 billion (approx Rs 8,835 crore), showing a decline of 52.7 per cent over the corresponding quarter of the previous year. During the quarter, there was an increase in outflows financed through loans while outflows financed through equity experienced a sharp decline.
Activity-wise, manufacturing sector occupied the largest share in India's outward investment during last quarter of 2009-10 and during 2009-10 as a whole. However, the share of manufacturing declined during 2009-10 in comparison to previous year.
Direction-wise, a larger part of India's outward investment was made in Mauritius during January-March 2010. On a yearly basis, Singapore was the largest FDI recipient in 2009-10, accounting for 35.5 per cent of India's total outward FDI, moreover, its share increased over the year.
Source: Newkerala