Foreign direct investment (FDI) in the country rose 22.65 per cent to Rs15,08,960 crore as of end March 2014, up from Rs12,30,250 crore as of 2012-13, with equities dominating the pie with share of 93.9 per cent.
As against this, outbound investments by domestic companies overseas jumped higher by 26 per cent toRs5,39,030 crore during the same period, up from Rs 4,27,900 crore as of 2012-13, according to the latest Reserve Bank data.
The ratio of outward to inward direct investment at market value rose marginally from 34.8 per cent in 2012-13 to 35.7 per cent in 2013-14, according to the data collated by an RBI Census on Foreign liabilities and Assets of Domestic Companies in 2013-14.
Out of the total inbound equity investments as much as Rs14,16,860 crore were in equities in 2013-14, which was Rs11,40,130 crore in previous year, while debt investments rose to Rs 92,100 crore in 2013-14 from Rs 90,120 crore in 2012-13, the census data showed. In case of outbound investments equities rose to Rs4,23,270 crore in FY14 from Rs3,53,800 core in FY13, the data showed.
The Annual Census on Foreign liabilities and Assets covers domestic companies which submit comprehensive information on their overseas liabilities and assets arising on account of FDI into the country, their overseas direct investment and other investments.
In the latest round of the census, of the 17,211 companies that have reported, as many as 15,788 had FDI/ODI in their balance sheets as of March 2014. Of these, 644 firms had bi-directional direct investment, 13,042 companies received only FDI and 2,092 had only outbound investments.The report also said majority of these responding companies are unlisted and most of them received only inward FDI. Non-financial companies had a larger share of foreign equity participation at Rs2,62,380 crore at face value compared with financial companies at Rs 56,080 crore in March 2014.
Other investment liabilities, which include trade credits, loans, currency and deposits and other payable with unrelated third-party non-resident entities stood at Rs10,47,000 crore as of March 2014 up from Rs 8,31,910 crore a year ago. Corresponding overseas assets accounted for 40.4 per cent of such liabilities.On the source countries for FDI, the report said,Mauritius had the largest share at 24.3 per cent, followed by Britain with 16 per cent, the US closely following with 15.9 per cent, Singapore at 9.6 per cent and Japan at 7.2 per cent.
Singapore topped amongst the destinations for outward investments by domestic companies with 23.5 per cent of the overall share, followed by Mauritius at 14.3 per cent, the Netherlands with 13.6 per cent and the UAE with 10.6 per cent.