The Reserve Bank of India (RBI) in its latest census on foreign liabilities and assets of Indian direct investment entities for 2022-23 has showed that the United States (US) was the largest source of foreign direct investment (FDI) in India, followed by Mauritius, the United Kingdom and Singapore. In case of overseas direct investment (ODI) also, Singapore, the United States and the United Kingdom were among the major destinations.

The report further noted that the manufacturing sector continued to attract the largest share of FDI equity, both at market value as well as at face value. Among services, ‘information & communication’ and ‘financial & insurance activities’ were the major FDI recipient sectors. It also stated that the total sales and purchase of foreign subsidiary entities in India grew by 22.7 per cent and 24.5 per cent respectively, in the rupee terms during 2022-23.

As per the data report, foreign subsidiaries in India continued to maintain strong external trade linkages as the exports and imports accounted for more than one-third of their sales and purchases, respectively. It added that activities of overseas subsidiaries of Indian companies accelerated during 2022-23 with 50 per cent increase in sales and 61.5 per cent increase in purchase in the rupee terms.