India's outward foreign direct investment demonstrated robust growth in July, rising 17% year-on-year to $5.70 billion from $4.88 billion recorded in the same month last year, according to provisional RBI data. The July figure also represented an increase from the $3.14 billion reported in June, indicating sustained momentum in overseas investment activities.
Equity commitments outside India showed significant improvement, increasing sharply to $2.01 billion in July from $776 million in June, though remaining comparable to the $2.07 billion recorded a year ago. Loans extended to overseas subsidiaries doubled to $876 million in July from $433 million a year ago, with June figures at $588 million. As reported by the RBI, outward FDI commitments comprise equity, loans and guarantees, all of which increased during July.
The RBI data revealed significant individual investment activities during July. Quest Global Engineering Solutions led equity outflows with a $664 million investment, followed by Aster DM Healthcare's $140 million and Natco Pharma's $108 million outflow. On the loan side, ONGC Videsh's $407 million transfer to its Singaporean subsidiary was the highest during the month. Additionally, Quest Global issued a $684 million guarantee to its Singaporean subsidiary in July.
The RBI emphasized that the data is provisional and subject to revision based on final reporting by banks. This disclaimer ensures market participants understand the preliminary nature of the current figures and the potential for future adjustments as complete bank reporting is completed.
