There was an abnormal decrease (in outward FDI investment in India) in 2013 because of macro-economic uncertainties when some of the Indian MNCs divested. But, now it is back on track. India outward investment (OFDI) rose by 32% in 2016 as compared to 2015.
RBI has relaxed the norms for domestic companies investing abroad by doing away with the ceiling for raising funds through pledge of shares, domestic and overseas assets. It raised the annual overseas investment ceiling to US$ 125,000 from US$ 75,000 to establish joint ventures (JV) and wholly owned subsidiaries.
There has been a significant improvement in outward FDI. Hence, it has been given the status “Adequate Progress”.