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

India witnessed a sharp decline in its outward Foreign Direct Investment (FDI) commitments, dropping to $2.25 billion in December 2023, as revealed by data from the Reserve Bank of India (RBI). This marks a significant downturn from the over $4.12 billion recorded in December 2022 and a sequential decrease from $4.0 billion in November 2023.

Components of Outbound FDI

Equity Commitments:

• • Equity commitments witnessed a notable decline, falling to $646.7 million in December 2023 from $1.38 billion in December 2022 and significantly lower than the $1.09 billion recorded in November 2023.

Debt Commitments:

• • Debt commitments decreased to $625.91 million in December 2023, down from $1.15 billion a year ago. However, it showed an increase from $190.05 million in November 2023.

Guarantees for Overseas Units:

• • Guarantees for overseas units saw a substantial decline to $978.19 million in December 2023 from $1.58 billion in December 2022. This was also a notable decrease compared to the $2.72 billion recorded in November 2023, according to RBI data.

Important Questions Related to Exams

1. What was India’s outward FDI in December 2023, according to RBI data?
2. How did equity commitments change from December 2022 to December 2023 in India’s outward FDI?
3. What are the three components of outbound FDI, expressed as financial commitments?
4. In November 2023, how did guarantees for overseas units compare to December 2022, based on RBI data?

Kindly share your responses in the comment section.