Overseas investment by Indian companies jumped to $8 billion during 2006-07 from less than $3 billion in the previous financial year.

Investment made by Indian companies in foreign countries increased from $2.80 billion in 2004-05 to $2.86 billion in 2005-06 and $7.95 billion in 2006-07, Minister of State for Finance Pawan Kumar Bansal told the Lok Sabha in a written reply on Friday.

The top five investment destinations for Indian companies include the United Kingdom, Netherlands, Mauritius, Cyprus and Russia, the minister said.

That liberalisation and streamlining of procedures towards overseas direct investment during the recent years have encouraged Indian companies to invest abroad, he said.

The location of investment, the minister said, depends upon factors like commercial judgement of investors, relative profitability and long-term strategy.