Outward FDI

Why is it in the news?
  • As per recent RBI data, India Inc.’s foreign direct investment in June fell by over two times from a year ago to $820.36 million.
More in the news
    • Other Findings:
      (1) The outward foreign direct investment (OFDI) by the Indian firms stood at $2.29 billion in the year-ago same month.
      (2) In May, the Indian firms had invested over $1.56 billion in their overseas ventures.
      (3) Of the total overseas direct investment during June, $340.28 million was in the form of equity infusion, $222.06 million was through loan and $258.02 million came in through issuance of guarantee.
      • Outward FDI:
        (1) An outward FDI is a business strategy in which a domestic firm expands its operations to a foreign country.
        (2) This can take form as a green field investment, a merger/acquisition, or expansion of an existing foreign facility.
        (3) Employing outward direct investment is a natural progression for firms if their domestic markets become saturated and better business opportunities are available abroad.
      Source
      The Hindu.




      Posted by Jawwad Kazi on 11th Jul 2019
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