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Japanese FDI in India-DIPP

Posted in DIPP, Uncategorized

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.

  1. 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.

 

  1. 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.

 

  1. 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.

  1. 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

 

      For Any Further facilitation please contact the undersigned-

      CP: Mr. Ravi Jha

      Email: rsj@sjeximtech.com

      Web: www.sjeximtech.com

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