Net Sales Growth of FDI Companies Eases to 8.7 Percent in FY25, RBI Data Shows

RBI Releases Data on FDI Companies in India

The Reserve Bank of India (RBI) has released data on the financial performance of non-government non-financial (NGNF) foreign direct investment (FDI) companies in India for the year 2024-25. The data, based on audited annual accounts of 3,100 companies, shows a moderation in net sales growth to 8.7 percent from 9.4 percent in the previous year.

The RBI's data highlights the performance of FDI companies in different sectors. In the services sector, net sales growth marginally increased to 12.7 percent from 12.2 percent in the previous year. In contrast, the manufacturing sector saw a deceleration in net sales growth to 5.1 percent from 6.8 percent in the previous year.

The majority of the sample companies belonged to the manufacturing and services sectors. Within the services sector, more than one third of the companies belonged to the information and communication industries. The RBI data also reveals that companies with direct investment from Singapore, the US, and Mauritius accounted for more than half of the sample companies.

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The RBI's data also highlights the impact of rising expenses on the operating profit growth of FDI companies. Operating profit growth slowed to 10.7 percent in 2024-25 from 22.1 percent in the previous year. However, private limited FDI companies showed higher profit growth than public limited FDI companies.

Profit after tax increased by 22.2 percent during 2024-25, supported by higher non-operating income and lower interest expenses. Industry-wise, services sector companies recorded higher post-tax profit growth (29.2 percent) as compared to manufacturing sector (12.6 percent).