According to the annual Census on Foreign Liabilities and Assets of Indian Direct Investment Entities for 2023-24 from the Reserve Bank of India (RBI), the United States of America (USA) continued to be the largest source of Foreign Direct Investment (FDI) in India, followed by Mauritius, Singapore and the United Kingdom (UK).
- The latest census has covered a total 41,653 entities, of which, 37,407 reported FDI and/or Overseas Direct Investment (ODI) in their balance sheets for March 2024.
- Of these, 29,926 entities had also reported in the last census round and 7,481 have newly reported in the current round.
- More than 75% (3/4th) of the companies that reported inward direct investment were subsidiaries of foreign companies.
Key Findings:
i.As per the RBI census, Non-Financial Companies(NFC)constituted for approximately 90% of the total FDI equity at face value.
ii.It showed that total FDI in India increased by 23.3% at market-value in rupee terms during the Financial Year 2023-24(FY24), mainly due to large valuation gains as well as fresh FDI inflows while, the ODI growth was much lower at 3.4%.
iii.The RBI’s census revealed that more than 97% of the responding entities were unlisted as at end-March 2024.
iv.The data from RBI census showed that unlisted entities registered a growth of 17.5% in FDI at market value during the year. Among the listed entities, the corresponding growth was higher at 29.8%.
- Also, the listed and unlisted entities had almost equal shares in total FDI at market value.
v.It showed that the ratio of outward to inward DI stock at market value has decreased from 19.3% (in March 2023) to 16.1% (in March 2024).
vi.It further showed that foreign subsidiaries in India have strong hold on external trade linkages as exports and imports accounted for 35.4% and 31.5% of their sales and purchases, respectively.
- The total sales and purchases of foreign subsidiaries in India during 2023-24, increased by 13.2% and 10.6%, respectively, in rupee terms.
- While, the combined sales and purchases of overseas subsidiaries of Indian entities registered a growth of 11% during 2023-24, in rupee terms.
vii.Manufacturing sector accounted for over 50% of the total FDI equity capital at market value while it had approximately 40% of the total share when calculated at face value.
- It mentioned that information and communication; financial and insurance activities in the services sector, were the major recipients of FDI during 2023-24.
Recent Related News :
On August 29, 2024, the Reserve Bank of India (RBI) launched a “Scheme for Trading and Settlement of Sovereign Green Bonds (SGrBs) in International Financial Services Centre (IFSC) in India” in exercise of its powers conferred under Section 45W of the RBI Act, 1934 read with Section 45U of the Act and of all the powers enabling it in this behalf.
- The scheme aims to facilitate investments in SGrBs issued by the Government of India (GoI) to eligible foreign investors in the IFSC
About Reserve Bank of India(RBI):
Governor– Shaktikanta Das(25th Governor of RBI)
Headquarters- Mumbai, Maharashtra
Established- 1 April, 1935
