Press Information Bureau

Government of India

Ministry of Finance

15-May-2012 16:43 IST

Outward FDI by Indian Companies

The outward Foreign Direct Investment (FDI) comprising equity, loan and guarantee invoked by Indian parties has increased from US$ 7210.32 million during 2000-01 to 2004-05 to over US$ 72037.17 million during 2005-06 to 2009-10.

The increased outward FDI by Indian parties has been primarily driven by resource seeking or market seeking or technology seeking motives. It is also a part of corporate strategy to promote the brand image and utilization of raw materials available in the host country.

An Indian party, who complies with the applicable provisions of Foreign Exchange Management Regulation is allowed to make FDI abroad under the general permission. The onus of ensuring/ adhering to the terms and conditions of the ODI regulations rests with the Indian Party.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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DSM/SS/SL

Outward foreign direct investment permitted under general permission when compliant with foreign exchange regulations, with compliance onus on investor. Indian parties may make outward foreign direct investment abroad under general permission if they comply with the applicable provisions of the Foreign Exchange Management Regulation; the primary onus is on the Indian party to ensure adherence to the terms and conditions of the overseas direct investment regulations.