Today, the Reserve Bank released the provisional results of the 2020-21* round of the annual census on foreign liabilities and assets (FLA) covering cross-border liabilities and assets of the entities with inward/outward direct investment (DI). These entities include companies, limited liability partnership (LLP), alternative investment fund (AIF) and partnership firms.
Out of the 33,550 reported entities in the latest census round, 30,246 had foreign direct investment (FDI) and/or overseas direct investment (ODI) in their balance sheet. Of these entities, 25,912 had reported in the previous census round; 4,334 reported only in the current round and 1,889 entities, which reported in the previous round, did not report in the current round. Around three-fourth of the reported inward direct investment companies were subsidiaries of foreign companies (i.e., single foreign investor holding more than 50 per cent of total equity).
The census captures detailed information on (a) market value of liabilities and assets of Indian DI companies arising on account of cross-border direct investment and other investments; and (b) other business parameters (activity sector, sales, purchase, exports and imports). The changes in outstanding assets/liabilities would be different from flows recorded in the balance of payments (BoP) statistics during a year, as the former would also include valuation changes due to price, exchange rate movements and other changes.
Press Release: 2021-2022/1354