India's Outward FDI Increases to $5 Billion in June, Nearly Double of Last Year's Figure
The Wire Staff
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New Delhi: The outward foreign direct investment (FDI) of India increased to $5.03 billion in June on a year-on-year basis, which is more than $2.9 billion, the figure for the same month last year.
Sequentially, it nearly doubled from $2.7 billion in May, according to the data from the Reserve Bank of India (RBI), reported Business Standard.
When expressed as a financial commitment, outbound FDI comprises of equity, loans, and guarantees.
According to the RBI data, equity commitments rose more than three-fold to $2.04 billion in June as against $670.7 million in June last year. It also doubled from $987.1 million in May.
While loan commitments registered a marginal increase to $585.55 million in June, up from $454.3 million in June last year, but they were lower than the $1.02 billion in May.
Guarantees for overseas units also increased to $2.40 billion in June from $1.8 billion a year ago and $692.2 billion in May.
Outbound FDI touched $6.64 billion in April-June this year. The figure included an equity component of $4.3 billion and a loan component of $2.34 billion.
FPIs pull out shares worth Rs. 77,901 crore from Indian markets
On the other hand, foreign portfolio investors (FPIs) pulled out a total of Rs. 77,901 crore of shares from Indian markets during the first half of 2025.
The highest outflows were seen in the IT sector, followed by fast moving consumer goods (FMCG) and power sectors.
Despite being net sellers, foreign investors’ shareholding in the domestic market stayed at 16.09 per cent as of June 30, 2025, slightly lower than 16.11 per cent as of December 2024, reported Indian Express.
According to data from the National Securities Depository Ltd (NSDL), foreign portfolio investors went on a selling spree in the first three months of 2025. They offloaded Rs. 1.17 lakh crore worth of equities, selling Rs. 78,027 crore in January, Rs. 34,574 crore in February, and Rs. 3,973 crore in March.
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