HOME > BUSINESS > Indian investments in foreign assets continues to remain high- Assocham

Indian investments in foreign assets continues to remain high- Assocham

Tentative global recovery notwithstanding, Indian companies continue to look abroad for greener pastures investing as much as USD 17.6 billion in April-September this fiscal while outward investment in the fiscal 2013-14 was USD 36.9 billion, an ASSOCHAM study has found.

Although Indian firms have invested overseas in the first half of the current fiscal, almost same as the comparable period of 2013-14, they are expected to retain their appetite for opportunities abroad, the paper said. “What is adding to their quest for going abroad is the attractive valuations of assets abroad , given the fact some of the markets like European Union are facing slowdown with several of the home companies seeking to exit”, said Mr D S Rawat ASSOCHAM Secretary General.

Even in the US, valuations are attractive. Exit options are entry opportunities for several global firms, including from India, the paper said. Besides the assets buying opportunities in various sectors, the Indian firms are making fresh investment in their existing facilities including in the manufacturing.

The ASSOCHAM recent paper on “India’s Capital Exports”, foreign investment was nearly USD 17.2 billion in 2008-09 but touched a peak US $ 43.9 billion in 2010-11. In 2013-14, foreign locations investment touched around US $36.9 billion than the US $ 26.8 billion in 2012-13.

About 5028 Indian companies have invested in foreign locations during April 2009 to September 2014. The top hundred companies that have recorded significant foreign investment account for 76.01 percent share in total foreign investment by Indian companies.

The sectoral pattern of foreign locations investment during April 2009 to September 2014-15 reveals that Indian companies have been investing largely in manufacturing sector and transport, storage and communication. The combined share in total foreign locations investment of these sectors is 52.7 percent during the period

Indian companies have invested US$ 51.5 billion in manufacturing sector which is almost 30 percent of total outflows in the sector for the five year period under review. Investment from India has reached nearly 113 countries, adds the ASSOCHAM report.

Mauritius is the most attractive destination for manufacturing sector investment having a share of 30.7 percent of the total overseas flows followed by Singapore (13.3 percent), United States of America (11.5 percent), Netherlands (11.1 percent), United Arab Emirates (7.35 percent), Switzerland (5.1 percent), British Virgin Islands (3.3 percent), United Kingdom (2. percent) and Cyprus (2.02 percent).

The top ten countries account almost for 88 percent of outward investment in manufacturing. Transport, storage and communication sector is the second most attractive sector for the Indian companies investing in foreign locations. The sector has recorded US $ 42.04 billion investment in foreign locations from India and it accounts for 24.1 percent share in total foreign locations investment during April 2009 to September 2014.

fdi

Netherland and Singapore accounted for almost 90 percent of the outflows in all while Mauritius was the top location in manufacturing, points out the paper.

Financial, insurance, real estate sector are the next most sought after sectors for outward flows. They recorded US $27.7 billion investment during April 2009 to September 2014-15 which is almost 16 percent of the total foreign locations investment during the same period.

Follow ULTRA.news
Raymond opens Ethiopia factory to cut costs, easy access to US, EU Textiles and garments brand Raymond inaugurated a garment manufacturing plant in Ethiopia to gain duty-free access to the US and European markets.The plant was set up at a cost of Rs 100 cr and will employ over 2500 people in the first phase. More people will join later, the...
Venture Capital firms seek validation for Modi’s policies in UP election BJP leader Uma Bharti at an election rallyPrivate equity and venture capital firms are largely bullish on India in the context of big economic reforms, but are awaiting the results of the ongoing Uttar Pradesh elections to assess the level of popular support that such polici...
Infosys invests Rs 14.5 cr in Danish artificial intelligence startup UNSILO Technology services provider Infosys said it made an investment of 14.92 mln Danish kroners in Danish startup UNSILO from its innovation fund.UNSILO is a Danish artificial intelligence startup founded in 2012 and focus on advanced text analysis.It uses a combination of m...
Infosys invests TidalScale, provider of simple supercomputing software Technology provider Infosys said it made investment in TidalScale, a provider of software-defined server.No details about the financial aspects of the investment were made public.TidalScale's offering, in many ways, is the opposite of virtualization. While virtualizat...
Huawei starts manufacturing Honor phones in India China-based Huawei said it will start to manufacture smartphones in India in collaboration with leading Sketch-to-Scale solutions provider, Flex, in October. Starting from first week of October 2016, the Flex manufacturing plant in Chennai will manufacture one of the Honor s...
India extends ‘permanent residency’ to foreigners The Indian Cabinet today approved extending 'permanent residency' to foreign investors.So far, one had to be a citizen to be a permanent resident in the country. Others faced hassles such as regular attendance at foreigners registration offices and visa extensions if they wer...
Canada’s SOTI to create 300 IT jobs in India, invest $12 mln Canada-based software company SOTI said it will invest $12 mln and add 300 jobs in India over the next two years.The majority of the new positions would be in engineering and software development roles, it said.SOTI is a provider of enterprise mobility management and Brin...
India’s Lumax opens design center in Taiwan Lumax Industries, one of the most prominent automotive lights makers in India, opened a design centre in Taiwan to strengthen its in-house design capabilities and facilitate its expansion in South East Asia."The opening of the Design Centre is seen as a strategic step towards...
Yamaha opens new Rs 1,500-cr manufacturing facility near Chennai India Yamaha Motor Pvt. Ltd. (IYM), the leading two wheeler manufacturer, today inaugurated its third manufacturing facility at the industrial park in Vallam Vadagal situated at the outskirts of Chennai, Tamil Nadu.The new factory will be the first in the Yamaha Motor gr...
Cisco announces $60 mln investment for India Cisco announced new investments in India of up to USD 20 million over the next five years into the Cisco Networking Academy, with an additional USD 40 million for the next phase of expansion in India.NETWORKING ACADEMYThe Cisco Networking Academy in India is one of the la...
Private Equity investment in India up 20% in March quarter Private Equity firms invested about $2,646 million across 124 deals during the quarter ended March 2015, according to early data from Venture Intelligence, a research firm focused on private company financials, transactions and their valuations.The investment amount was 20% ...
Indians spend Rs 45,000 crore/year on overseas education – Survey In the absence of quality higher education and none of the IITs making to world’s top research institutions, Indian students spend USD 6-7 billion (approx. Rs 45,000 crore) annually in seeking greener pastures in foreign universities with a miniscule number of them choosing to re...
Indiabulls Asset Mgmt to invest Rs 10,000 cr through real estate funds in 5 years Just in case you are one of those people who believe that the Indian real estate market still has upside, Indiabulls Asset Management has launched its maiden real estate fund.The Rs 500-cr fund will invest in residential projects in top 5 cities in India."We plan to scal...
Global real estate firm Hines to invest Rs 1,500 cr in Indian market Hines, the international real estate firm, has launched a new $250 mln investment vehicle known as Hines India Residential along with an international partner for investment into the Indian housing real estate sector.With offices in 115 cities in 18 countries, and controlled ...
Not just FDI in defence; please fix FII in defence – Assocham Even as the issue of foreign direct investment in defence sector is being debated, an industry association has pointed out that foreign institutional investment in Indian companies is preventing them from making defence equipment.Unlike FDI, FII is done through the stock exch...
Modi Government could face Rupee problems as foreign inflows double – report Riding on huge expectations from the incoming Modi Government, global investors are gung ho on the Indian economy which is expected to see a doubling of foreign investment inflows- including FDI and FIIs- to above USD 60 billion in the current financial year than about USD 29 b...