India received about 39 per cent of the total outward foreign direct investments by Bangladeshi firms in the 2023-24 financial year.
According to Bangladesh Bank data, Bangladeshi firms directed $31.51 million in FDI to India in the financial year from the $81 million total outward FDI.
After taking $4.86 million in inflows from the neighbouring country into consideration, the net outflow to India stood at $26.65 million, the central bank data showed.
The United Arab Emirates ranked second in receiving FDI from Bangladesh, with the total outflow of $10.81 million and the net outflow of $10.79 million from the country.
India and the UAE together accounted for over 50 per cent of Bangladesh鈥檚 total outward FDI in FY24.
A substantial portion of these investments targeted financial intermediaries and mining and quarrying sectors.
Mustafizur Rahman, executive director of the Centre for Policy Dialogue, told 抖阴精品 that Bangladesh mainly focused on attracting inward FDI rather than encouraging outward investments.
India accounted for the largest share of Bangladesh鈥檚 outward FDI, though the amount remained modest, he said.
Experts emphasised the need for stricter monitoring of outward FDI to ensure adequate returns and assess its long-term benefits.
They suggested clear tracking mechanisms and regular reporting of financial outcomes to ensure efficient use of investments.
The total outward FDI increased to $81 million in FY24 from $67.43 million in FY23.
However, the stock position of outward FDI decreased by 3.65 per cent to $328.89 million as of June 2024.
The net FDI equity capital outflows rose by $7.4 million year-on-year, suggesting increased capital movement from Bangladeshi investors to foreign ventures.
Yet, the overall net FDI outflow posted a dramatic decrease of 107.2 per cent to $1.22 million in FY24 due to higher inflows from abroad.
In recent years, companies from the developing world have increasingly invested abroad, seeking business opportunities outside their own home countries, according to the BB report.
鈥楽ome Bangladeshi bank branches and exchange houses operated their business abroad. By the dint of amendment, outward foreign direct investments by Bangladeshi firms has increased significantly. Now such investments by Bangladeshi firms have gone to more than 18 host countries,鈥� it said.
