The government said on Friday the FDI outflow due to growing foreign acquisitions by Indian companies, is not a cause for concern as the country has comfortable foreign exchange reserves.
"FDI inflow is every day phenomenon, outflow is occasional... This phenomenon (FDI outflow) has to be viewed in totality. Don't be worried. It is not a cause for concern," Finance Secretary Adarsh Kishore told PTI.
With mega acquisitions this year, including largest ever by Indian industrial house Tatas, there is a possibility that the country may see less FDI inflow than outflow this year.
If opportunity comes for acquisitions abroad, it should not be lost, Kishore said.
Ooutflow and inflow of FDI should not be looked from short term perspective, he said.
The country has substantial forex reserves, he said, adding if some FDI is coming in, some will go out. India has $165.27 billion of foreign exchange reserves as on October 13 this year.
National Manufacturing Competitiveness Council also said on Thursday it was not disturbed by the increasing number of acquisitions abroad by corporate India, but feels the trend would accrue economic gains for the country.
"I do not see any warning signals (in overseas acquisitions). It is a positive sign and displays managerial and entrepreneurial abilities of Indians who can takeover under managed companies abroad and run them profitably," NMCC Chairman V Krishnamurthy said.
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