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The market value of the United Kingdom’s foreign direct investments in India at ₹5,31,200 crore overtook the US’ ₹5,25,771-crore as at March-end 2020. This is per the Reserve Bank of India’s latest Census on Foreign Liabilities and Assets of Indian Direct Investment Entities, 2019-20, released on April 1.
In 2019, the market value of the US’ FDI in India was higher at ₹5,77,412 crore against the UK’s ₹5,08,610-crore. By March-end 2020, the market value of FDI investments made in India by Mauritius declined to ₹4,86,561 crore (₹5,02,191 crore as at March-end 2019). The market value of FDI from Singapore and the Netherlands increased to ₹4,14,299 crore (₹3,76,185 crore) and ₹2,98,349 crore (₹2,43,121 crore), respectively.
FDI forms
The total market value of FDI investments from all countries in India as at March-end 2020 was about one per cent higher at ₹32,59,226-crore against ₹32,20,715-crore as at March-end 2019. About 94 per cent of the FDI was by way of equity and the balance in the form of debt.
“The year-end market valuation of equity, especially that of the listed companies, was strongly influenced by the stock market crash in March 2020 at the onset of the Covid-19 pandemic. FDI equity of unlisted companies witnessed a 15.9 per cent growth during the same period,” RBI said in a statement.
Manufacturing sector
A break-up of the market value of overall FDI into India shows that the manufacturing sector accounted for about 53 per cent of the flowsfollowed by services (42 per cent), and other activities (5 per cent).
Within the manufacturing sector, the motor vehicles, trailers and semi-trailer, and food products sub-sectors accounted for about 10 per cent each of the total investment in the sector, followed by chemicals and chemical products, and pharmaceuticals, medicinal and chemical products (8 per cent each).
Within the services sector, the information and communication, and financial and insurance activities sub-sectors accounted for 41 per cent and 30 per cent each, respectively, of the total investment in the sector. Wholesale and retail trade; repair of motor vehicles and motorcycles sub-sector accounted for 8 per cent of the FDI in the services sector.
Overseas investment
The country-wise distribution of overseas direct investment (ODI) by India Inc shows that the market value of their investments was highest in Singapore at ₹1,38,105 crore (₹1,09,854 crore), followed by the US (₹95,308 crore vs ₹86,447 crore), and the Netherlands (₹95,082 crore vs ₹91,069 crore). The total market value of ODI recorded a higher growth of 13.4 percent during 2019-20 to ₹6,97,273 crore as at March-end 2020 against ₹6,14,688 crore as at March-end 2019.
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