India’s Outward FDI Surges in February 2024

In a notable increase, India’s outward foreign direct investment (FDI) commitments soared to $3.47 billion in February 2024, marking a significant rise from the $2.82 billion recorded in February 2023, and an increase from $2.18 billion in January 2024. This data, released by the Reserve Bank of India (RBI), highlights a growing trend in India’s financial commitments abroad.

Overview of Outward FDI Growth

• Year-on-Year Increase: Outward FDI surged to $3.47 billion in February 2024, up from $2.82 billion in the same month of the previous year.
• Sequential Growth: There was also a notable month-on-month increase from $2.18 billion in January 2024.

Breakdown of Investment Components

• Equity Commitments: Investments in equity declined to $502.14 million from $776.79 million a year earlier, and down from $764.29 million in January 2024.
• Debt Commitments: Debt investments decreased to $251.08 million from $334.75 million in February 2023, and were lower than the $306.59 million observed in January 2024.
• Guarantees: Commitments in guarantees experienced a substantial rise to $2.71 billion, from $1.71 billion in the previous year, and significantly higher than $1.11 billion in January 2024.