Indian Companies' Foreign Investments Surge to $37.7 Billion in 2024
Click to start listening
Synopsis
In 2024, Indian firms’ overseas FDI investments surged by 17% to $37.7 billion, reflecting a strong corporate sector capable of expanding internationally. Significant investments include L&T's $2.4 billion in Saudi Arabia and Bharat Petroleum’s $669 million in the Netherlands.
Key Takeaways
- Overseas FDI by Indian companies reached $37.7 billion.
- Equity investments rose by 40% to $12.69 billion.
- Loans increased to $8.7 billion in 2024.
- L&T’s $2.4 billion investment was the largest.
- Investments spanned countries like Saudi Arabia and Singapore.
New Delhi, Jan 19 (NationPress) Overseas FDI investments by Indian firms experienced a significant increase of 17 percent, reaching $37.7 billion in the calendar year 2024, up from $32.29 billion the previous year. This growth highlights the enhanced capabilities of India's corporate sector in pursuing international opportunities.
The Outbound Foreign Direct Investment (OFDI) encompasses equity investments, loans, and guarantees extended to companies overseas. Notably, equity investments surged by 40 percent to $12.69 billion in 2024, compared to $9.08 billion in 2023.
In the loan category, OFDI from Indian companies amounted to $8.7 billion in 2024, a rise from $4.76 billion the previous year. However, the guarantees issued by Indian firms to foreign entities, including their subsidiaries, fell to $16.29 billion in 2024, down from $18.44 billion in 2023.
The most significant overseas investment by an Indian entity in 2024 was made by Larsen and Toubro (L&T), which invested $2.4 billion in its Saudi Arabian subsidiary, L&T Hydrocarbon Saudi Company, in February 2024.
L&T secured a $4 billion order from Saudi Arabia's state-owned Aramco in FY24 for the expansion of the gas company, according to L&T’s filings.
L&T's power transmission and distribution division received major orders valued between Rs 10,000 to Rs 15,000 crore for the enhancement of electricity grids in Saudi Arabia and the United Arab Emirates.
The recent contracts involve ±500kV HVDC transmission links, two 380kV overhead transmission lines, and a bulk supply 380kV Gas Insulated Substation in Saudi Arabia, alongside two significant 400kV Gas Insulated Substations in the UAE, as per the company’s statement.
The second-largest foreign investment was from Bharat Petroleum, whose wholly owned subsidiary, Bharat PetroResources, issued guarantees totaling $669 million in August for its international arm, BRPL International, located in the Netherlands.
Bharat PetroResources focuses on oil and gas exploration and production, including the development of a large hydrocarbon field in Brazil.
Other notable transactions include an equity investment of $629 million by healthcare technology firm Sagility India in its US-based subsidiary, Sagility (US) Holding.
Additional key transactions of 2024 involve a $385 million guarantee from Adani Ports and SEZ for its joint venture in Israel, Mediterranean International Ports ADGD, and a $440 million loan from Tata Steel to T Steel Holdings Singapore.
Indian companies have made investments in various countries, including Singapore, the US, the UK, Saudi Arabia, UAE, Oman, and Malaysia.
