India’s outward foreign direct investment eased slightly to $4.41 billion in September, down from $ 4.81 billion in the same month last year, according to Reserve Bank of India data. However, on a sequential basis, outbound flows jumped from $2.59 billion in August.
Equity commitments saw a sharp year-on-year rise, nearly tripling to $2.57 billion in September from $828.1 million a year earlier. This was also significantly higher than the $1.0 billion recorded in August.
Equity surges, while loans and guarantees drop
Loan-based FDI fell to $952.3 million in September, compared to $1.21 billion in the same month last year, though it remained above August’s $551.2 million. Meanwhile, guarantees extended to overseas subsidiaries dropped sharply to $892.4 million, down from $2.76 billion a year ago and $1.04 billion in August.
Major outbound deals in September
Among the key outbound investments in September, Prime Focus committed $348.71 million in equity to its joint venture DNEG in Luxembourg, Intas Pharmaceuticals extended $213.03 million in loans to its wholly owned subsidiary Accord Plasma B.V. in the Netherlands and Zydus Wellness provided $355.76 million in guarantees for its UK subsidiary, while Zydus Medtech committed $253.33 million to its French unit.