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This marks a 51% increase from $2.82 billion in November 2024 and a 64.5% rise compared to $2.59 billion in December 2023, according to data from the Reserve Bank of India (RBI).
OFDI refers to a country’s investment in businesses located in other nations, commonly also known as direct investment abroad.
Equity sees robust growth
Equity commitments surged to $1.4 billion in December 2024, a 48% rise from $946.79 million in November 2024 and 65% higher than $850.56 million in December 2023.
Guarantees drive the increase
Guarantees issued climbed to $2.02 billion in December 2024, a threefold increase from $641.4 million in November 2024 and nearly doubling from $1.03 billion a year earlier.
Loans decline sequentially
Loan commitments stood at $844.26 million in December 2024, a 32% decline from $1.23 billion in November 2024, but up 18% from $713.11 million in December 2023.
These commitments reflect India’s expanding global footprint, despite the fluctuations in individual components such as loans and guarantees. The data remains provisional and subject to updates by authorised dealer (AD) banks.
Net FDI slowdown during April-October
Net foreign direct investment (FDI) into India witnessed a significant slowdown, with the Reserve Bank of India’s (RBI) December bulletin revealing a decline to $2.1 billion during April-October 2024, compared to $7.7 billion in the same period a year earlier. This drop was primarily attributed to increased repatriation and a rise in net outward FDI.
In contrast, gross inward FDI climbed to $48.6 billion during April-October 2024, up from $42.1 billion a year earlier, reflecting sustained investor interest in the Indian market.
The decline in net FDI aligned with trends observed across several emerging market economies, including Mexico, Vietnam, Indonesia, the Philippines, and Thailand, underscoring a broader shift in global investment flows.
First Published: Jan 15, 2025 3:21 PM IST
