Data from the Reserve Bank of India (RBI) shows that the direct investment of Indian companies in overseas ventures almost doubled to $2.8 billion in June 2021.
This figure stood at $1.39 billion in June 2020. Still, it was significantly lower than the $6.71 billion figure recorded in the preceding month of May 2021, as revealed by RBI data on outward investments by Indian firms.
Out of the $2.8 billion worth of investments in June 2021, Tata Steel’s $1 billion venture into a wholly-owned subsidiary in Singapore grabbed the top spot.
Wipro’s $787.5 million investment in a wholly-owned unit in the US and Tata Power’s infusion of $131.25 million into a wholly-owned unit in Mauritius followed it closely.
The other ventures include Reliance Industries’ $56 million investment into agriculture and mining based WOS in Singapore and the WNS Global Services $45 million investment in a joint venture (JV) in the Netherlands.
Out of the total investment, $1.17 billion was made in terms of issuance of a guarantee, whereas $1.21 billion was rolled out as loans. Moreover, equity investments were made to the tune of $426.84 million.
However, the RBI has cautioned that this particular data is also subject to change based on online reporting through the authorized dealer banks, The Economic Times reports.