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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.
- 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.
- 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.
- 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:
- *These amounts include the inflows received through FIPB/SIA route, acquisition of existing shares,
RBI’s automatic route and RBI’s – NRI schemes.
- 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.
- **Country & sector specific details on ‘re-invested earnings’ and ‘other capital’ are, however, not
centrally maintained by the Reserve Bank of India.
- **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 | |||||
Source: DPIIT, Ministry of Commerce, Government of India
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