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 per cent 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 per cent in 2018-19 from 11.2 per cent 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 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 per cent of the funds were utilised for fixed investment in 2018-19, as compared with 33.5 per cent 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.

(Yogesh Dayal)     
Chief General manager

Press Release: 2019-2020/2467