The United States retained its position as the largest contributor of Foreign Direct Investment (FDI) in India, followed by Mauritius, Singapore, and the United Kingdom, as per the annual census conducted by the Reserve Bank of India. Out of the 41,653 entities surveyed, 37,407 reported FDI and/or Overseas Direct Investment (ODI) in their financial statements for March 2024.
Among these entities, 29,926 had also reported in the previous census, while 7,481 were newly added in the current round, according to the Census on Foreign Liabilities and Assets of Indian Direct Investment Entities for 2023-24.
The majority of companies reporting inward direct investment were subsidiaries of foreign corporations. Non-financial firms represented nearly 90 percent of the FDI equity at face value, as stated by the RBI.
Total FDI in India witnessed a significant 23.3 percent increase in market value in rupee terms during the fiscal year 2023-24, primarily driven by valuation gains and fresh inflows. On the contrary, ODI growth was more modest at 3.4 percent.
Unlisted entities saw a 17.5 percent growth in FDI at market value, whereas listed entities experienced an even higher growth rate of 29.8 percent. With FDI growth surpassing ODI growth, the ratio of outward to inward DI stock at market value decreased to 16.1 percent in March 2024 from 19.3 percent a year earlier, according to the RBI’s census findings.
Furthermore, foreign subsidiaries in India maintained strong ties to external trade, with exports and imports accounting for a significant portion of their sales and purchases. Total sales and purchases by foreign subsidiaries in India increased by 13.2 percent and 10.6 percent, respectively, in rupee terms during the fiscal year 2023-24.
