FDI by Indian companies climbs by 59% during May to $3.7 bn

NEW DELHI: The outward foreign direct investment (FDI) by the Indian companies has surged by nearly 59% during May to $3.7 billion. Indian companies such as Gammon, Tata Steel and Religare are among the top investors internationally.

The outward flows during May 2010, was at about $1.39 billion. The net outward foreign direct investment (FDI) by Indian firms during the April-May, 2011, period stood at 5.09 billion, which was way lower than the $5.98 billion posted in the corresponding period last year, said the Reserve Bank of India (RBI).

The Indian overseas investment policies have been amended and also simplified with the aim to fulfill the changing needs of a growing economy in the globalised environment.

According to a statement from RBI, “In the post-2003 period, the policy has enabled corporate entities and registered partnerships to invest in bonafide businesses abroad, currently to the extent of 400 per cent of their net worth, under the automatic route.”