FDI by Indian cos rise 9-fold to $72 bn in 5 yrs till 2009-10

NEW DELHI: Foreign direct investment ( FDI) by Indian companies rose by nine-fold to over USD 72.04 billion over five years till 2009-10 from 7.21 billion during 2000-01 to 2004-05.

"The increased outward FDI by Indian parties has been primarily driven by resource seeking or market seeking or technology seeking motives," Minister of State for Finance Namo Narain Meena said in a reply to Rajya Sabha today.

The minister added that the increase in outward investment is a corporate strategy to promote the brand image and utilisation of raw materials available in the host country.

Those Indian companies that comply with provisions of Foreign Exchange Management Regulations are allowed to invest abroad under the general permission, the minister said.

However, "the onus of ensuring or adhering to the terms and conditions of the outward direct investment (ODI) regulations rests with the Indian party" he added.