Source: The Economic Times, Dec 19, 2016
MUMBAI: Mauritius accounted for 20.8 per cent of FDI in India followed by the US, the UK, Singapore and Japan up till March 2016, the Reserve Bank said while releasing the Census on Foreign Liabilities and Assets of Indian Direct Investment Companies for 2015-16.
The destination for Overseas Direct Investment (ODI) of Indian companies was largely Singapore, Mauritius, the Netherlands and the US.
“Equity participation had a much larger share (93.4 per cent) than debt in total inward FDI, which stood at Rs 20,140 billion at market value in March 2016 (Rs 19,813.4 billion a year ago).
“Total ODI was placed at Rs 5,79,020 crore at market value (Rs 5,63,700 crore a year ago). Under ODI too, equity participation had a large share (80.5 per cent)” the data said.
The ratio of outward to inward direct investment, at market value, increased marginally from 28.5 per cent to 28.7 per cent over this period.
Both manufacturing and services sectors attract foreign equity participation. Total FDI stock at market value in the manufacturing and services sectors stood at Rs 10,00,630 crore in March 2016 and Rs 8,59,080 crore, respectively.
While manufacturing sector accounted for around half of the total FDI at market prices, ‘information and communication services’ (20.1 per cent) and ‘financial and insurance activities’ (11.2 per cent) were other major activities attracting FDI.
As per the data, total sales, including exports, of overseas subsidiaries increased by 22.5 per cent to Rs 3,30,110 crore in 2015-16. The total value of their purchase, including imports, increased by 44.7 per cent to Rs 3,15,070 crore in 2015-16. Their purchase-to-sale ratio was 95.4 per cent.
Many companies did not report sales/purchase because of being at incipient stage or other reasons.
In the 2015-16 round of FLA census, out of the 18,549 reporting companies, 17,008 companies had FDI/ODI in their balance sheet in March 2016. Of these, 649 companies had bi-directional direct investment, 14,383 companies received only FDI and 1,976 had only ODI.