RBI Annual Census of Foreign Liabilities and Assets of Indian Direct Investment 2018-19 Released

Reserve Bank of India (RBI) released the provisional results of the 2018-19 round of annual census. The census is on the foreign liabilities and assets (FLA) of Indian Direct Investment (DI) entities. Such entities have cross-border liabilities and assets arising on account of Foreign Direct Investment (FDI) in India and/or overseas direct investment (ODI). Reporting entities include Companies, Limited Liability Partnership (LLP), Alternative Investment Fund (AIF) and Partnership firms. Results released on 17 April 2020 by RBI.

Foreign equity participation in inward DI companies was high as over 75% of them were subsidiaries of foreign companies. Census reports include a total of 28,004 entities. Out of these 25,009 had FDI/ODI in their balance sheet in March 2019. Out of these, 18,110 entities had reported in the previous census round and 6,899 reported for the first time; 2,622 entities of the previous round did not report in the latest round.

Main Findings of the RBI Annual Census:

  1. 96% (24,131) of the DI entities are unlisted and they own a larger foreign equity share in the total equity capital. Around 3.5% (878) are listed.
  2. FDI equity accounted for nearly 80%  share in total paid-up capital of non-financial FDI companies whereas financial FDI companies were lower at around 68%.
  3. Total Inward DI stood at 32,92,902 Cr. whereas total Outward DI stood at 5,92,930 Cr.
  4. Outstanding liabilities with unrelated party stood at 19,66,921 Cr. whereas the assets stood at 6,23,324 Cr.
  5. The USA was the largest source of FDI in India displacing Mauritius. France remained at the bottom.
  6. Singapore (17.8 per cent share at market value) was the largest destination of investment by Indian companies, the least being the Cayman Islands.
  7. The Manufacturing Sector had a dominant share in FDI equity capital (face value), as well as in total FDI at market value, the lowest one being Mining.
  8. Total sales (including exports) of foreign subsidiaries in India increased by 17.0%(2,10,930 Cr.) during 2018-19. Their total purchase (including imports) grew by 20.1%(1,19,371 Cr.).
  9. Foreign subsidiaries in the information and communication services contributed substantially to exports.
  10. Total sales (including exports) of overseas subsidiaries of Indian entities increased by 15.5% during 2018-19, while their total purchase (including imports) grew by 16.1%.
  11. In the case of overseas subsidiaries of Indian entities, the share of imports in their total purchases (63.4 %) during 2018-19 was substantially higher than their exports in total sales (45.0%).

About the Census

RBI Annual Census gives information on the Market value of foreign liabilities and assets of Indian DI entities. Arising on account of FDI, ODI and other investments; and other business parameters (activity sector, sales, purchase, export and import).