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Finances of Foreign Direct Investment Companies, 2018-19

Today, the Reserve Bank released on its website (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_46) data relating to finances of foreign direct investment (FDI) companies in India for the year 2018-19. The analysis is based on audited annual accounts of select 8,095 companies accounting for 47.5 percent of the paid-up capital (PUC) of the FDI companies, which have reported in the Reserve Bank’s Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2018-19. Explanatory notes to the statements are given in the Annex.

Highlights

  • Sales growth of the selected FDI companies accelerated to 13.8 percent in 2018-19 from 11.2 percent in the previous year: the increase in sales was broad-based (Statements 2 and 8).
  • Despite higher growth in sales, operating profit moderated due to an increase in operating and manufacturing expenses (Statements 2 and 8).
  • Growth in output, measured in terms of gross value added (GVA), moderated in 2018-19 mainly due to lower GVA growth in the manufacturing sector (Statements 2 and 8).
  • Nearly 40 percent of the funds were utilized for fixed investment in 2018-19, as compared with 33.5 percent in the previous year (Statement 6).
  • Equity investment outpaced borrowing growth of the FDI companies across sectors, resulting in a decline in leverage during the year (Statement 3 and 11).
  • Export intensity (measured as the exports to sales ratio) continued to decline at the aggregate level as well as across sectors (Statement 11).

Note: The Ministry of Corporate Affairs (MCA), Government of India is the primary source of these data.

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TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

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