The Reserve Bank of India released, on its website, the data related to the Census on Foreign Liabilities and Assets of Indian Companies for the year 2013-14. The Annual Census on Foreign Liabilities and Assets (FLA), 2013-14 covers Indian companies which submit comprehensive information on their overseas liabilities and assets arising on account of foreign direct investment (FDI) in India, their overseas direct investment (ODI) and other investments. In the latest round of the Census, out of the 17,211 companies that have reported, 15,788 companies had FDI/ODI in their balance sheet in March 2014.

Of these, 644 companies had bi-directional direct investment, 13,042 companies received only FDI and 2,092 had only ODI. Of the 13,686 companies that reported inward direct investment, 9,081 companies were subsidiaries of foreign companies (i.e., single foreign investor holding is more than 50% of total equity), which also report information on their sales, purchase, exports and imports. Of the 2,736 ODI reporting Indian companies, 1,314 companies had 2,012 overseas subsidiaries. As some companies may still report, the results presented below are provisional.

Main Findings:

• Coverage: Majority of the responding companies were unlisted and most of the companies received only inward FDI. Non-financial companies had a larger share of foreign equity participation (` 2,623.8 billion at face value) as compared with financial companies (` 560.8 billion) in March 2014 ( Tables 1 and 2 ).

 

• Inward/Outward Direct Investment: Total inward FDI stood at ` 15,089.6 billion at market value in March 2014 (` 12,302.5 billion a year ago). A dominant share (93.9 per cent) of FDI was held in equity. Total ODI was placed at ` 5,390.3 billion at market value in March 2014 (` 4,279.0 billion a year ago). In ODI too, equity participation took a large share (78.5 per cent). The ratio of outward to inward direct investment at market value increased marginally from 34.8 per cent to 35.7 per cent over this period 

 

• Other Investment: Other investment liabilities, which include trade credit, loans, currency and deposits and other payable with unrelated (third party) non-resident entity, stood at ` 10,470.0 billion in March 2014 (` 8,319.1 billion a year ago). Corresponding overseas assets accounted for 40.4 per cent of such liabilities

• Source/Destination countries of Inward and Outward FDI: Among the source countries for FDI, Mauritius had the largest share (24.3 per cent) followed by UK (16.0 per cent), USA (15.9 per cent), Singapore (9.6 per cent) and Japan (7.2 per cent). The destination for ODI of Indian companies was largely shared by Singapore (23.5 per cent), Mauritius (14.3 per cent), Netherlands (13.6 per cent) and UAE (10.6 per cent)

• Activity/Sector-wise of Inward FDI: Both manufacturing and services sectors attracted foreign equity participation. Total FDI stock at market value in the manufacturing and services sectors stood at ` 7,458.1 billion in March 2014 (` 6,128.2 billion a year ago) and ` 5,987.2 billion (` 4,921.3 billion a year ago), respectively. While manufacturing sector accounted for nearly half of the total FDI at market prices, ‘information and communication services’ (17.1 per cent) and ‘financial and insurance activities’ (12.7 per cent) were the other major activities attracting FDI

• Sales/Purchases of Indian Subsidiary Companies in Foreign Countries: Total sales, including exports, of Indian subsidiaries increased by 29.9 per cent to ` 3,140.0 billion in 2013-14. The total value of their purchase, including imports, increased by 30.0 per cent to ` 2,353.3 billion in 2013-14. Their purchase-to-sales ratio was around 75 per cent

• Exports/Imports of Indian Subsidiary Companies in Foreign Countries: Total exports of Indian subsidiaries increased by 16.6 per cent to ` 919.6 billion in 2013-14 whereas their total imports increased by 33.4 per cent to ` 1,049.5 billion in 2013-14. Their export-to-sales and import-to-purchase ratios stood at 29.3 per cent and 44.6 per cent, respectively, in 2013-14

• Sales/Purchases of Foreign Subsidiary Companies in India: Total sales, including exports, of foreign subsidiaries increased by 11.1 per cent to ` 15,260.6 billion in 2013-14 whereas their purchase, including imports, increased by 8.5 per cent to ` 9,595.6 billion in 2013-14. Their purchase to sales ratio was around 63 per cent

• Exports/Imports of Foreign Subsidiary Companies in India: Total exports of foreign subsidiaries companies increased by 14.3 per cent to ` 4,900.1 billion in 2013-14. Exports accounted for 32.1 per cent of total sales of subsidiary companies. The ‘Information and communication services’ sector had the highest share of 17.0 per cent in sales, of which, 77.2 per cent was through exports. Total imports of subsidiary companies increased by 7.0 per cent to ` 4,395.9 billion in 2013-14. Imports accounted for 45.8 per cent of total purchase of these companies (

Sangeeta Das

Director

Press Release : 2014-2015/1509

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