The RBI on Thursday launched the provisional outcomes of the 2019-20 spherical of the annual census on foreign liabilities and belongings (FLA) masking cross-border liabilities and belongings of the entities with inward/outward direct funding.
These entities embody corporations, restricted legal responsibility partnership (LLP), different funding fund (AIF) and partnership companies.
“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 mentioned.
Of these entities, 22,881 had reported in the earlier census spherical; 4,920 reported solely in the present spherical and a couple of,128 entities, which reported in the earlier spherical, didn’t report in the present spherical.
“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 mentioned.
Exports constituted practically three-fourths of the sales of foreign subsidiaries in the data and communication companies. This sector accounted for practically half of the total exports by foreign subsidiaries.
It additional mentioned total FDI in India elevated by 1.2 per cent at market worth (in rupee phrases) throughout 2019-20. The year-end market valuation of fairness, particularly that of the listed corporations, was strongly influenced by the inventory market crash in March 2020 on the onset of COVID-19 pandemic.
FDI fairness of unlisted corporations witnessed a 15.9 per cent development throughout the identical interval, RBI mentioned.
Total abroad direct funding recorded increased development of 13.4 % throughout 2019-20. The ratio of inward to outward direct funding at market worth 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 mentioned.
Food merchandise and vehicles (motor autos, trailers and semi-trailers) had vital share in FDI in manufacturing sector. In the companies sector, ‘info and communication companies’ and ‘monetary and insurance coverage actions’ have been the highest FDI recipients.
As per the census, home sales, home purchases and exports of foreign subsidiaries in India recorded modest development whereas their imports contracted throughout 2019-20.
RBI mentioned the census captures detailed info on market worth of liabilities and belongings of Indian DI corporations arising on account of cross-border direct funding and different investments; and different enterprise parameters (exercise sector, sales, buy, exports and imports).