Indian Outbound FDI Soars Amidst Geopolitical Tensions

In a significant upswing, four Indian entities have collectively committed nearly USD 6 million in foreign direct investments (FDI) in Azerbaijan and Turkiye. This is a fraction of the total USD 6.8 billion overseas investments proposed by Indian companies in April, according to recent data from the Reserve Bank of India (RBI).

The surge, representing a near 90% increase annually, was primarily driven by Tata Communications, Life Insurance Company, and JSW Neo Energy. Meanwhile, two Indian entities, Omega Plasto Ltd and Rama Pure Water Pvt Ltd, have invested in Turkiye's wholesale, retail trade, and hospitality segments through joint ventures.

Amidst these robust financial engagements, geopolitical tensions simmer. Turkiye and Azerbaijan have condemned India's strikes on terror camps in Pakistan, potentially straining diplomatic and trade relations. Calls for boycotting Turkish goods and tourism gain momentum, supported by the Indian Chamber of Commerce, as India navigates complex international relationships.

(With inputs from agencies.)