Rs 6,400 crore invested out of India by Indian companies in May 2022.
New Delhi: Of the total 427 transactions of Foreign Direct Investment (FDI) outflow from India in May 2022, amounting to $803 million, almost one-fourth of these outward FDI (101) has gone to the United States of America (USA), followed by other countries like United Arab Emirates (53), United Kingdom (45) and Singapore (44).
In the same period, Bangladesh saw 9 India originated FDIs, Australia saw 8 FDIs, Germany got 7 FDIs, while Myanmar and Sri Lanka, too, got six FDIs from India.
The corresponding figures for April 2022 was almost $3,584 million, while in May 2021, the number was $7120 million. Conversely, the FDI inflow that India received in March 2022 was $4593 million, while the FDI outflow from India in March 2022 was $3,339 million. These outward transactions done by corporates in May confirm the market sentiment, including the fact that the investors are looking for “safe markets” (as their choice of US and UAE indicates) where the risk is less and that also the fact that the corporates are not willing to put money in new or additional ventures as the outward remission in May 2022 was 1/9 of what it was in May 2021 and one fourth of what was in April 2022. Among the largest such transaction that was done in May 2022, as per the latest numbers released by the Reserve Bank of India (RBI), was carried out by the state owned Oil and Natural Gas Corporation (ONGC) which invested $54 million in Myanmar, followed by another state owned enterprise, Gas Authority of India Limited (GAIL), that sent $25 million to the USA.
The Hyderabad-based Megha Engineering and Infrastructure Limited invested $26 million in the Netherlands, while Interglobe Enterprise invested almost $27 million in UK under the head of “Wholsale, retail trade, restaurants and hotels”. Interglobe, that also runs India’s IndiGo airlines, has 14 hotels in 11 countries outside India, including in London. Other sources who did outward transactions include the Ahmedabad-based Intas Pharma which invested $20 million in the US in May, the Surat-based Sahajanand Medical Technologies limited which invested $17.95 million in Ireland.
The Bhopal-based Mapaex health and personal care private limited, too, invested $11.42 million in Ireland. State-owned NTPC invested $17.5 million in Bangladesh, while TVS supply chain solutions limited remitted $17 million to the UK. Similarly, the Mumbai-headquartered WNS Global Services Private Limited invested $25 million to Netherlands.