The RBI on Thursday released the provisional results of the 2019-20 round of the annual census on foreign liabilities and assets (FLA) covering cross-border liabilities and assets of the entities with inward/outward direct investment.
“Out of the 30,753 reported entities in the latest census round, 27,801 had foreign direct investment (FDI) and/or overseas direct investment (ODI) in their balance sheet,” it said.
Of these entities, 22,881 had reported in the previous census round; 4,920 reported only in the current round and 2,128 entities, which reported in the previous round, did not report in the current round.
“Exports of foreign subsidiaries in India accounted for 32.6 per cent of their total sales, while imports had 34.8 per cent share in their purchases during 2019-20,” the RBI said.
Exports constituted nearly three-fourths of the sales of foreign subsidiaries in the information and communication services. This sector accounted for nearly half of the total exports by foreign subsidiaries.
It further said total FDI in India increased by 1.2 per cent at market value (in rupee terms) during 2019-20. The year-end market valuation of equity, especially that of the listed companies, was strongly influenced by the stock market crash in March 2020 at the onset of COVID-19 pandemic.
FDI equity of unlisted companies witnessed a 15.9 per cent growth during the same period, RBI said.
Total overseas direct investment recorded higher growth of 13.4 percent during 2019-20. The ratio of inward to outward direct investment at market value stood at 4.7 per cent in March 2020.
“Manufacturing sector share in total FDI equity capital stood at 45.5 per cent at face value and 52.3 per cent at market value,” it said.
Food products and automobiles (motor vehicles, trailers and semi-trailers) had significant share in FDI in manufacturing sector. In the services sector, ‘information and communication services’ and ‘financial and insurance activities’ were the top FDI recipients.
As per the census, domestic sales, domestic purchases and exports of foreign subsidiaries in India recorded modest growth whereas their imports contracted during 2019-20.
RBI said the census captures detailed information on market value of liabilities and assets of Indian DI companies arising on account of cross-border direct investment and other investments; and other business parameters (activity sector, sales, purchase, exports and imports).