Agencies : 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.
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.
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