India Inc's equity investment abroad dips 22% in July, RBI data shows

Kolkata: Equity investment on foreign shores by Indian companies reduced by 22% in July as compared with the same month last year, Reserve Bank of India data showed.

India Inc invested $1.592 billion in overseas companies in July against 2.047 billion in the year ago period. Their equity investment was at $2.098 billion in June.

The fall in investment volume was seen amid a tighter regulation on outward foreign direct investment. The RBI told compliance heads of banks to inform their corporate clients that if they do not fix their old lapses by August this year, they will have to follow higher scrutiny and tighter rules before making fresh financial commitments outside.

Total financial commitment by India Inc towards overseas companies however stood higher in July as compared to the year-ago position, on account of a rise in guarantees issued.

Their total financial commitment overseas stood at $3.512 billion against $3.319 billion seen a year back. Total commitment however dipped when compared with $5.138 billion seen in June this year.

Indian companies issued guarantees amounting to $1.614 billion in July against $987 million a year back.