RBI states Indian overseas investment doubled in 2010-11

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RBI states Indian overseas investment doubled in 2010-11
With expansion in foreign business, the overseas investments by Indian companies have more than doubled in the previous fiscal year. The data was released by the central bank, for the first time. The released further elaborated that $5.1 bn was recorded by the foreign direct investment (FDI) by Indian corporate, in the first two months of the current fiscal year that started in April.

The amount further, recording a jump of more than two folds in fiscal year 2010/11, rose to $43.9 bn from about $18 bn in the previous year. The FDI flow with investments in services, construction and auto sectors, in April, helped in reversing previous year's situation.

The investment has further increased because of the liberalization done in the Indian overseas investment policies, over past few years. The liberalization was done with an aim to promote exports and strengthen economic linkages with other countries. "In the post 2003 period, the policy has enabled corporate entities and registered partnerships to invest in bonafide businesses abroad, currently to the extent of 400 percent of their net worth, under the automatic route," the Reserve Bank of India said in a release on its website.

Despite offloading $1.16 bn in May, India continues to face a fall in foreign institutional investment on global risk aversion. The foreign funds selling are recorded to be nearly $213 million of local shares so far in June.  

Read more about: rbi, economy, bank, investment, fdi
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