India’s Outward FDI Plummeted to $2.25 Billion in December 2023: RBI Data

India’s external growth witnessed a sharp decline Foreign Direct Investment (FDI) The commitments fell to $2.25 billion in December 2023, Reserve Bank of India (RBI) data showed. This marks a significant decline from $4.12 billion recorded in December 2022 and a gradual decline from $4.0 billion recorded in November 2023.

Components of Outbound FDI

Equity Commitments:

    • A significant decline was seen in equity commitments, falling from $1.38 billion in December 2022 to $646.7 million in December 2023 and significantly lower than the $1.09 billion recorded in November 2023.

Loan Commitments:

    • Loan commitments for December 2023 fell to $625.91 million from $1.15 billion a year earlier. However, it saw an increase from $190.05 million in November 2023.

Guarantee for overseas units:

    • A sharp decline in guarantees for foreign units was seen in December 2023, down from $1.58 billion in December 2022 to $978.19 million. This was also a significant decrease compared to $2.72 billion recorded in November 2023, according to RBI data.

Important questions related to exam

  1. According to RBI data, what was India’s outward FDI in December 2023?
  2. How did equity commitments in India’s outward FDI change from December 2022 to December 2023?
  3. What are the three components of outbound FDI expressed as financial commitments?
  4. Based on RBI data, how were the guarantees for foreign units in November 2023 compared to December 2022?

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India's outward FDI falls to $2.25 billion in December 2023: RBI data_40.1

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