India's outward FDI jumps 17% to $5.7 billion in July: RBI

India's outward foreign direct investment (FDI) rose 17% year-over-year to $5.70 billion in July, according to provisional data from the Reserve Bank of India (RBI). This figure surpassed the $4.88 billion recorded in July 2021. The increase was also higher than the $3.14 billion reported in June.

Equity commitments outside India surged to $2.01 billion in July, up significantly from the $776 million reported in June. However, this was in line with the $2.07 billion reported in July of the previous year. Loans extended to overseas subsidiaries doubled in July, reaching $876 million, compared to $433 million a year ago. Additionally, loans exceeded $588 million reported in June.

The RBI noted that the data is provisional and may be revised based on final reports submitted by banks. Outward FDI commitments encompass equity, loans, and guarantees, all of which saw growth in July. Equity outflows were primarily driven by Quest Global Engineering Solutions, with an investment of $664 million. Aster DM Healthcare contributed $140 million, while Natco Pharma's outflow amounted to $108 million.

Among loans, ONGC Videsh's transfer of $407 million to its Singaporean subsidiary was the largest during the month. Quest Global also issued a $684 million guarantee to its Singaporean subsidiary in July.