Dated: 02/11/2016

 

FDI SYNOPSIS: JAPAN-INDIA 

CUMULATIVE FDI INFLOWS: 

• Cumulative FDI inflows (including equity, re-invested earnings & other capital): from April 2000 to February 2014, are US$ 81 billion.

(Data on re-invested earnings and other capital is available only from April 2000, and is estimated by RBI, on an average basis, based upon data for the previous two years)

 

• Cumulative FDI equity inflows all Countries in India during the period from April 2000 to February 2014 are US$ 05 billion, excluding amount remitted on RBI’s-NRI Schemes. These FDI inflows do not include country-wise data on ‘Re-invested earnings’ and ‘Other capital’, which are, not maintained by RBI.

 

• FDI equity inflows US$ 05 billion received from all countries, out of these:

o   SHARE OF JAPAN IN FDI EQUITY INFLOWS FROM APRIL 2000 TO FEBRUARY 2014

• Rank: Japan ranks 4th

• Percentage share of total FDI inflows: is 46%

• Total FDI Inflows from Japan: are US$ 97 billion

 

o   SECTORS THAT ATTRACTED MAXIMUM FDI EQUITY INFLOWS FROM JAPAN: 

• Top sectors that attracted FDI equity inflows(from April 2000 to February 2014), from

Japan, are:

• Drugs & Pharmaceuticals (28%)
• Automobile Industry (16%)
• Services Sector (15%)
• Metallurgical Industries (9%)
• Electrical Equipment (4%)

o   TOP FDI EQUITY INFLOWS RECEIVED:

(from April 2000 to February 2014, from foreign companies, into Indian companies from Japan) 

• DAIICHI SANKYO LTD.
• JFE STEEL CORPORATION
• NIPPON LIFE INSURANCE COMPANY
• NISSAN MOTORS COMPANY
• MATSUSHITA ELECTRIC WORKS LTD
• SUMITO MITSUI BANKING CORPORATION
• HONDA MOTOR CO LTD
• HITACHI CONSTRUCTION MACHINERY CO LTD
• SUZUKI MOTOR LTD.,
• MITSUI SUMITOMO INSURANCE LTD

 

BRIEF NOTE ON FOREIGN DIRECT INVESTMENT (FDI) FROM JAPAN 

An analysis of the foreign direct investment (FDI) equity inflows, received in India, since 2000, shows that the FDI inflows have risen substantially.

2. CUMULATIVE FDI EQUITY INFLOWS (remittance-wise) received during April 2000- 2014 (up to February 2014) were 1,022,339.15 crores (US$ 214.05 billion). Out of this, FDI inflows from Japan (which ranks 4th) are Rs. 78,817.03 crores (i.e. US$ 15.97 billion), which represents 7.46% of the cumulative inflows received (this amount does not include inflows received prior to April 2000, as such data prior to that date was not centrally maintained by the RBI). Further, project, country & sector specific FDI equity inflows data, in respect of Japan, is available only from April 2000 onwards.

 

3. TOTAL FDI INFLOWS during the period April 2000 to February 2014, (including equity, re-invested earnings & other capital) are US$ 81 billion. Country & sector specific details of re- invested earnings and other capital are, however, not centrally maintained by the Reserve Bank of India.

 

4. YEAR-WISE FDI INFLOWS received from Japan companies, since April 2000, as compared to total inflows are given below:

 

FINANCIAL YEAR-WISE INFLOWS OF FOREIGN DIRECT INVESTMENT:

(Amount of FDI inflows)

 

Financial Year (April-March)	FDI equity inflows From Japan		FDI equity inflows from all Countries *		Total FDI inflows (including equity, re-invested earnings & other capital) **
	Rs. in crores	US$ in million	Rs. in crores	US$ in million	(US$ in million)
2000-01	976.64	223.66	10,733	2,463	4,029
2001-02	808.78	177.68	18,654	4,065	6,130
2002-03	1,970.96	411.87	12,871	2,705	5,035
2003-04	360.45	78.36	10,064	2,188	4,322
2004-05	575.19	126.24	14,653	3,219	6,051
2005-06	925.07	208.29	24,584	5,540	8,961
2006-07	382.47	84.74	56,390	12,492	22,826
2007-08	3,336.41	815.20	98,642	24,575	34,843
2008-09	21,692.58	4,469.95	142,829	31,396	41,873
2009-10	5,670.40	1,183.40	123,120	25,834	37,745
2010-11	7,062.98	1,562.00	97,320	21,383	34,847
2011-12 ^	14,089.09	2,971.70	165,146	35,121	46,556
2012-13	12,243.42	2,237.22	121,907	22,423	36,860
2013-14 (up to February, 2014)	8,722.58	1,418.31	125,960	20,766	31,731
Cumulative Total (April 2000-February 2014)	78,817.03	15,968.61	1,022,873	214,170	321,809

 

Note:

1. *These amounts include the inflows received through FIPB/SIA route, acquisition of existing shares,

RBI’s automatic route and RBI’s – NRI schemes.

2000. The amount of FDI equity inflows, in respect of country/sector specific data was not provided by RBI, Mumbai, prior to April

• ^Inflows for the month of March, ’12 are as reported by RBI, consequent to the adjustment made in

the figures of March,‘11, August, ’11 and October, ’11.

1. **Country & sector specific details on ‘re-invested earnings’ and ‘other capital’ are, however, not

centrally maintained by the Reserve Bank of India.

1. **Data in respect of ‘Re-invested earnings’ & ‘Other capital’ for the years 2009-10, 2010-11, 2011-12, 2012-13 & 2013-14 are on an estimated It is estimated by RBI as an average of the previous two years.

 

4.1.        SECTOR-WISE DISTRIBUTION OF FDI INFLOWS:

 

On perusal of the sector-wise distribution of FDI equity inflows received from Japan, from 01.04.2000 to 28.02.2014, it is seen that the highest FDI equity inflows have been in the Drugs & Pharmaceuticals, which accounts for about 28% of FDI inflows from Japan. Automobile Industry, with about 16%, is in the second place and Services Sector, with over 15%, is in the third place.

 

4.2.        SHARE OF TOP SECTORS ATTRACTING FDI EQUITY INFLOWS FROM JAPAN

(from April 2000 to February 2014):

(Amount of FDI equity inflows)

 

Rank	Sector	Amount of FDI equity inflows		% age of FDI equity inflows from Japan
		Rs. in crores	US$ in million
1	Drugs & Pharmaceuticals	21,688.81	4,400.97	27.56
2	Automobile Industry	12,389.49	2,526.21	15.82
3	Services Sector*	12,666.78	2,447.31	15.33
4	Metallurgical Industries	6,498.95	1,397.16	8.75
5	Electrical Equipment	3,112.51	686.51	4.30
Total of Above		56,356.54	11,458.16	71.76

*Services sector includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis

 

• DETAILS OF TOP FDI INFLOWS RECEIVED FROM JAPAN (remittance-wise)

(through Indian companies, from April 2000 to February 2014):

Sl. No	Name of Indian Company	FDI Route	Name of Foreign Collaborator	RBI Regional Office	Item of Manufacture	Amount of FDI Inflows
						(In Rs crore)	(In US$ million)
1	RANBAXY LABORATORIES LTD.	RBI	DAIICHI SANKYO CO. LTD.	REGION NOT INDICATED	MANUFACTURE OF CHEMICAL SUBSTANCES USED IN THE MANUFACTURE OF PHARMACEUTICALS	6,818.66	1,401.42
2	RANBAXY LABORATORIES LTD.	RBI	DAIICHI SANKYO CO. LTD.	REGION NOT INDICATED	MANUFACTURE OF CHEMICAL SUBSTANCES USED IN THE MANUFACTURE OF PHARMACEUTICALS	6,037.01	1,240.77
3	JSW STEEL LTD.	RBI	JFE STEEL CORPORATION	MUMBAI	MANUFACTURE OF SEMI FINISHED IRON & STEEL PRODUCTS NEC	4,800.72	1,060.26
4	RANBAXY LABORATORIES LTD.	RBI	DAIICHI SANKYO CO. LTD.	REGION NOT INDICATED	MANUFACTURE OF CHEMICAL SUBSTANCES USED IN THE MANUFACTURE OF PHARMACEUTICALS	3,539.14	722.28
5	RANBAXY LABORATORIES LTD.	RBI	DAIICHI SANKYO CO. LTD.	REGION NOT INDICATED	MANUFACTURE OF CHEMICAL SUBSTANCES USED IN THE MANUFACTURE OF PHARMACEUTICALS	3,409.22	700.69
6	RELIANCE LIFE INSURANCE COMPANY LTD	RBI	NIPPON LIFE INSURANCE COMPANY	REGION NOT INDICATED	LIFE INSURANCE HEALTH INSURANCE & ANNUITY BUSINESS	2,761.61	543.02
7	RENAULT NISSAN AUTOMOTIVE INDIA PVT LTD	RBI	NISSAN MOTORS COMPANY	CHENNAI	MANUFACTURE OF TRANSPORT EQUIPMENT & PARTS	1,477.00	274.67
8	RELIANCE CAPITAL ASSET MANAGEM LTD	RBI	NIPPON LIFE INSURANCE COMPANY	REGION NOT INDICATED	FINANCIA,ASSET MANAGEMENT & PORTFOLIO MANAGEMENT	1,449.98	260.98
9	ANCHOR ELECTRICALS PVT LTD	FIPB	MATSUSHITA ELECTRIC WORKS LTD	REGION NOT INDICATED	ELECTRICAL PRODUCTS.	1,440.83	341.85
10	KOTAK MAHINDRA BANK LTD	RBI	SUMITO MITSUI BANKING CORPORATION	MUMBAI	BANKING ACTIVITIES INCLUDING FINANCIAL SERVICES	1,366.12	303.47
11	INDUSIND BANK	RBI	VARIOUS	MUMBAI	DEPOSIT ACTIVITIES (THIS GROUP	1,304.83	209.60

 

 

Sl. No	Name of Indian Company	FDI Route	Name of Foreign Collaborator	RBI Regional Office	Item of Manufacture	Amount of FDI Inflows
						(In Rs crore)	(In US$ million)
	LTD.		INVESTORS		INCLUDES ACTIVITIES OF CENTRAL BANKS, COMMERCIAL BANKS, SAVINGS BANKS
12	HONDA SIEL CARS INDIA LTD	RBI	HONDA MOTOR CO LTD	NEW DELHI	MANUFACTURE OF MOTOR CARS	1,200.00	215.98
13	TELCO CONSTRUCTION EQUIPMENT CO LTD	RBI	HITACHI CONSTRUCTION MACHINERY CO LTD	REGION NOT INDICATED	MFG CONSTRUCTION EQUIPMENT	1,159.50	260.56
14	MARUTI UDYOG LTD	FIPB	SUZUKI MOTOR CO. LTD.,	NEW DELHI		1,000.00	208.33
15	MAX NEW YORK LIFE INSURANCE CO. LTD	RBI	MITSUI SUMITOMO INSURANCE CO. LTD	REGION NOT INDICATED	LIFE INSURANCE BUSINESS	984.41	175.69
16	MAX NEW TORK LIFE INSURANCE COMPANY LTD	RBI	MITSUI SUMITOMO INSURANCE COMPANY LTD	REGION NOT INDICATED	LIFE INSURANCE	984.41	185.65
17	CLARIS OTSUKA LIMITED	FIPB	OTSUKA PHARMACEUTICAL FACTORY, INC	AHMEDABAD	MANUFACTURE OF DRUGS, MEDICINES & ALLIED PRODUCTS	787.80	125.78
18	INDIA YAMAHA MOTORS PVT LTD	RBI	YAMAHA MOTOR CO LTD	NEW DELHI	MANUFACTURE OF CHILDREN’S BICYCLES, TRICYCLES INCLUDING PERAMBULATORS	750.00	169.03
19	TATA REFRACTORIES LTD	RBI	KROSAKI HARIMA CORPORATION	REGION NOT INDICATED	MFG OF REFRACTORY PRODUCT	576.10	128.44
20	TATA TELESERVICES	RBI	NTT DOCOMO INC	REGION NOT INDICATED	TELECOMMUNICATION SERVICES	567.75	110.83
21	TATA TELESERVICES	RBI	NTT DOCOMO INC	REGION NOT INDICATED	TELECOMMUNICATIONS SERVICES	465.14	92.91
22	ANCHOR ELECTRICALS PVT. LTD.	RBI	PANASONIC ELECTRIC WORKS CO LTD.	REGION NOT INDICATED	MANUFACTURING & MARKETING OF ELECTRICAL	460.90	98.65
23	RENAULT NISSAN AUTOMOTIVE INDIA PVT LTD.	RBI	NISSAN MOTOR COMPANY LTD.	CHENNAI	MANUFACTURE OF MOTOR CARS & OTHER MOTOR VEHICLES PRINCIPALLY DESIGNED FOR THE TRANSPORT	450.00	99.65
24	ANCHOR ELECTRICALS	RBI	MATSUSHITA ELECTRICAL	MUMBAI	WHOLESALE TRADE IN ELECTRICAL MACHINERY AND EQUIPMENT	425.67	104.28
25	ESCORT YAMAHA MOTOR LTD.	FIPB		NEW DELHI		400.00	88.89
Grand Total						44,616.79	9,123.68

 

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