{"id":35804,"date":"2025-01-20T18:42:24","date_gmt":"2025-01-20T13:12:24","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=35804"},"modified":"2025-01-21T16:57:52","modified_gmt":"2025-01-21T11:27:52","slug":"outward-foreign-direct-investment","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/20-01-2025\/outward-foreign-direct-investment","title":{"rendered":"Outward Foreign Direct Investment\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As per the RBI, Outward foreign direct investment (OFDI) by domestic firms has seen a jump of nearly<strong> 17% to $37.68 billion in 2024.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2023, total overseas direct investment stood<strong> at $32.29 billion.<\/strong><\/li>\n\n\n\n<li>In the last calendar year, overseas FDI by local companies in the form of equity stood at <strong>$12.69 billion, a rise of 40% over the 2023.<\/strong><\/li>\n\n\n\n<li>This is a positive sign that Indian companies are also going global.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Overseas Direct Investment<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overseas Direct Investment (ODI) refers to an<strong> investment made by a company or individual in assets or businesses located in another country.&nbsp;<\/strong><\/li>\n\n\n\n<li>It involves <strong>directly owning and controlling a foreign business or setting up operations<\/strong> such as subsidiaries, joint ventures, or branches in foreign markets.<\/li>\n\n\n\n<li><strong>Key points about ODI:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Control and Influence:<\/strong> A significant level of control or influence over the foreign business (usually at least 10% ownership).<\/li>\n\n\n\n<li><strong>Purpose: <\/strong>To expand their operations, access new markets, benefit from resources, or diversify risks.<\/li>\n\n\n\n<li><strong>Investment Forms: <\/strong>It can include investments in foreign companies, real estate, infrastructure projects, or other assets.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sectors for Investment by India: <\/strong>Hotels, construction, manufacturing, agriculture, mining and services.&nbsp;<\/li>\n\n\n\n<li><strong>Countries for Investment: <\/strong>Singapore, US, UK, UAE, Saudi Arabia, Oman and Malaysia, among others.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transfer of technology and skill, sharing of results of research and development (R&amp;D),&nbsp;<\/li>\n\n\n\n<li>access to wider global market,&nbsp;<\/li>\n\n\n\n<li>promotion of brand image,&nbsp;<\/li>\n\n\n\n<li>generation of employment and utilisation of raw materials available in India and in the host country,<\/li>\n\n\n\n<li>drivers of foreign trade and also a source of foreign exchange earnings.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Joint ventures (JVs) and wholly owned subsidiaries (WOS) have become vital avenues for Indian businesses aiming to boost their global presence.&nbsp;<\/li>\n\n\n\n<li>The fact that Indian companies are investing in their own subsidiaries indicates that they are expanding outside.&nbsp;<\/li>\n\n\n\n<li>The Indian companies&#8217; continued international reach are not only helping them expand globally but are also fostering deeper economic ties between India and other nations.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/outward-foreign-direct-investment-rises-by-17-to-37-68-bn-in-2024-9786158\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per the RBI, Outward foreign direct investment (OFDI) by domestic firms has seen a jump of nearly 17% to $37.68 billion in 2024.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-35804","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/35804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=35804"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/35804\/revisions"}],"predecessor-version":[{"id":35866,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/35804\/revisions\/35866"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=35804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=35804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=35804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}