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Indian Companies Boost Global Expansion with 17% Surge in Foreign Investments

Breaking down the components of OFDI, Indian companies have seen significant growth in equity investments. In 2024, equity investments amounted to $12.69 billion, a 40% increase from $9.08 billion in 2023.

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Indian companies are actively expanding their global presence, with outward foreign direct investment (OFDI) rising by nearly 17% to reach $37.68 billion in 2024, according to data from the Reserve Bank of India (RBI). In comparison, the total overseas investment in 2023 stood at $32.29 billion.

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OFDI, which includes acquiring unlisted equity capital, subscribing to a foreign entity’s memorandum of association, or investing in 10% or more of the paid-up equity capital of a listed foreign entity, is a key indicator of companies' international expansion. It also involves investments where control is exerted with less than a 10% stake in listed foreign firms.

Breaking down the components of OFDI, Indian companies have seen significant growth in equity investments. In 2024, equity investments amounted to $12.69 billion, a 40% increase from $9.08 billion in 2023. Loans from Indian companies to foreign entities also grew to $8.7 billion, up from $4.76 billion in 2023. However, the issuance of guarantees dropped slightly to $16.29 billion, from $18.44 billion in the previous year.

Indian firms are diversifying their investments across various sectors, including hotels, construction, manufacturing, agriculture, mining, and services. Prominent destinations for these investments include Singapore, the United States, the United Kingdom, the UAE, Saudi Arabia, Oman, and Malaysia.

Experts believe that these investments, especially in subsidiaries, highlight a strong trend of Indian companies expanding internationally and strengthening partnerships with foreign entities.

Joint ventures (JVs) and wholly owned subsidiaries (WOS) offer a range of benefits, such as technology transfer, access to wider global markets, enhanced brand image, and increased employment opportunities. These investments also contribute to foreign trade through the export of machinery, goods, and services, along with foreign exchange earnings via dividends, royalties, and technical know-how fees. 

RBI foreign direct investment Indian Companies