India's overseas investment in May down 39 pc year on year

Tags: News
Overseas direct investment by Indian companies stood at $ 1.59 billion in May 2014, down 39.3 per cent from a year ago.

The overseas foreign direct investment (FDI) by companies was at $ 2.62 billion in May 2013. The Indian companies had made financial commitment to the tune of $ 5.58 billion in April 2014.

The overseas FDI during May 2014 consisted of $ 155.69 million from equity, $ 182.59 million from loan and $ 1.26 billion were through issuance of guarantees, the RBI data on 'Outward FDI from India' showed today.

"There are primarily twin reasons for the same. Firstly, the financial stress the Indian companies are going through over the last year on the backdrop of political uncertainly, slowing down economy and policy bottlenecks.

"The mood was of caution and fear and hence the investments were lower. Secondly the weakening of the Indian rupee also played a vital role making the overseas acquisitions expensive," said Girish Vanvari, Co-Head of Tax, KPMG India.

Maharashtra Seamless, Emcure Pharmaceuticals, Graphite India, Inox India, Scrabble Entertainment, Welspun Corp Ltd and Simplex Infrastructure were among the major investors overseas in May 2014.

Pipes and tubes manufacturer Maharashtra Seamless invested $ 54.86 million in its joint venture in UAE and Graphite India made an investment of $ 31.40 million in a wholly owned subsidiary in the Netherlands.

Emcure Pharmaceuticals made a total investment of $ 29.21 million in two separate tranches in its wholly owned units in the UK and the US.

Cryogenic engineering company Inox India had commitment of $ 26.02 million in its joint venture in the US, while Scrabble Entertainment made an investment of $ 25 million in two separate deals in its joint venture and a wholly owned unit in the UAE and the US respectively.

Simplex Infrastructures had commitment of $ 18.7 million in a joint venture in Oman and Welspun invested $ 16.84 million in its joint venture in Mauritius.

Other major investors included Gitanjali Gems ($ 15.5 million), Glenmark Pharmaceuticals ($ 15.58 million), IL&FS Transportation Networks ($ 11.75 million), and Oil India Ltd ($ 9.55 million).

EDITORIAL OF THE DAY

  • It makes sense to highlight PM’s achievements with little noise to attract greater attention

    Are prime minister Narendra Modi and the BJP going over the top?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Can Hefa actually become a reality?

The ministry of human resource development (MHRD) is actively wo­rking ...

Kuruvilla Pandikattu

The India of our dreams

The speech “I have a dr­eam,” that Martin Luther King ...

Shona Adhikari

Head to Tate Modern for a refresher course on Bhupen Khakhar

India’s celebrated artist Bhupen Khakhar’s exhibition, titled You Can’t Please ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture