India Inc’s overseas investments at $12.25bn: Report

MUMBAI: Corporate India has invested $12.25 billion overseas during the first eight months of the current fiscal, most of which has gone into the firms’ wholly-owned subsidiaries in the US, Singapore or the Netherlands, according to data collated by Care Ratings.
In the whole of FY20, total foreign direct investment (FDI) by domestic companies was $13 billion, while FDI inflows had hit a record $76 billion, according to the ratings agency.
Of the total $12.25 billion outward FDI during April-November this fiscal, the actual outflow was $6.35 billion, of which $2.97 billion was through equities and $3.38 billion in loan commitments and the balance $5.90 billion was in the form of guarantees, the agency said quoting RBI data.
As against this, during the first five months of the current fiscal, total FDI inflows rose to $35.73 billion, the highest-ever for the period, and 13 per cent higher than same period in FY20 when it stood at $31.60 billion. This was primarily driven by the string of deals that Reliance Industries clinched for its telecom and retail arms.
For the full FY20, inflows stood at $76 billion, which after adjusting for repatriation of around $18 billion, meant $56 billion of foreign direct investment, which was the highest achieved on record.
In FY20, around $13 billion was invested outside, which was the second successive year of double-digit overseas investment since FY13. But the peak was $19 billion in FY09 and $18 billion in FY08.
From a sectoral point of view, 90 per cent of the money invested overseas was in financials, insurance and business services ($3.89 billion), followed by manufacturing at $3.45 billion, agriculture and mining ($1.90 billion) and wholesale, retail trade and hotels ($1.73 billion).
Destination-wise, the US topped the list by attracting $2.36 billion, followed by Singapore ($2.07 billion), the Netherlands ($1.50 billion), British Virgin Islands ($1.37 billion) and Mauritius ($1.30 billion).
These five countries accounted for nearly 70 per cent of total FDI outflows from the country.
As much as 76 per cent or $9.25 billion of the total $12.25 billion was pumped into wholly-owned subsidiaries and the balance $3 billion into joint ventures.
Leading the companies’ chart was ONGC Videsh, which invested $1.85 billion in various oil fields.
The second was JSW Steel which invested $865 million, followed by Haldia Petrochemicals ($599 million), HCL Technologies ($587 million), Mahindra & Mahindra ($551 million), Adani Properties ($391 million), Lupin ($382 million), Piramal Enterprises ($312 million), Cadila Healthcare ($222 million), Infosys ($221 million) and Tata Steel at $200 million.

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