India’s outward FDI declines to $1.89bn in Oct

Mumbai, Nov 13 : Indias outward foreign direct investment (FDI) commitments declined to $1.89 billion in October this year from $2.

66 billion in the same month last, data released by the RBI showed on Monday.

The outgoing foreign investments are lower compared to the previous month of September as well during which investments to the tune of $2.14 billion were made abroad by Indian entities.

The decline in outgoing foreign investments reflects fewer opportunities in a slowing global economy.

Outbound FDI, expressed as a financial commitment, comprises three components -- equity, loans, and guarantees.

Indian investors are now required to disclose their overseas investments to the RBI.

One of the key objectives of the revised overseas investment rules is to enhance transparency and regulatory compliance.

According to officials this has helped the government to curb round-tripping of funds that is undertaken to avoid payment of taxes and launder money by unscrupulous elements.

pannu/pgh