Despite continued geopolitical concerns in West Asia, Indian corporations showed endurance in March by considerably increasing their investments in the United Arab Emirates. Data from the Reserve Bank of India shows that 208 companies invested a total of $686 million via the Overseas Direct Investment (ODI) method, which is much greater than January’s $93 million and more than twice February’s $322 million.
Devyani International contributed $100 million to its joint venture in the United Arab Emirates, while Lloyds Metals and Energy contributed $68 million. Adani Power and Patanjali Ayurved were other investors.
The increase coincides with high-net-worth investors being wary of local markets. Experts point out that long-term strategic placement, with the UAE acting as a crucial center for India’s economic ties with Africa and the larger MENA area, is responsible for the stability of corporate investments.
In March, total ODI outflows increased to around $7 billion, indicating Indian companies’ ongoing global expansion. Despite short-term geopolitical dangers, analysts claim that robust legal frameworks and decreasing trade uncertainty are bolstering cross-border investment confidence.
Source – Moneycontrol
