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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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