Yet, the figures, taking into account only FDI equity inflows, do suggest a year-on-year dip that makes it lower than outward investment, and which calls for policy correction.
Now our corporates do need to invest abroad to access new technology and research and development capability, and also take advantage of the historically low interest rates in the mature markets to grow their balance sheets. While in the first half, overseas investments were directed to resource rich countries such as Australia, UAE, and Sudan, in the latter half, OID was channelled into countries providing higher tax benefits such as Mauritius, Singapore, British Virgin Islands, and the Netherlands.
We do need to step-up inward FDI to shore up investment, and benefit from global expertise and networks.
Investment outlook in some of the overseas market looks positive.
Road ahead Overseas investment is one of the foremost steps to enter the global marketplace and in recent times, India has taken necessary steps to make its presence felt in the global arena.
Of course, the changes in the operating environment that would make it easier for foreigners to invest in India would make it easier for Indians to invest at home as well.
The government's supportive policy regime complemented by India Inc.