Amid the Reserve Bank of India's (RBI) tightening norms, overseas investment by Indian companies have declined sharply to $1.94 billion in August. The RBI has clamped norms for outbound investments by the domestic firms to contain rupee slide. A month ago in July, the Indian firms had invested $ 3.24 billion in their various entities overseas.
In August, of the total investment made abroad, $1.41 billion was through guarantee issued, $381.37 million via loans and investment of $144.71 million was made through equity. The RBI in mid-August took sharp measures in a bid to save rupee from a free-fall and put curbs on Indian firms investing abroad besides reducing outward remittances.
Among the major investors, Bharti Airtel, Tata Power Company, Financial Technologies, Essar Constructions Overseas and Reliance Industries were invested in their overseas units during the month.