Moderation in FDI Companies' Sales Growth

The Reserve Bank of India's latest data reveals a moderation in sales growth for select foreign direct investment (FDI) companies, dropping to 8.7 percent in 2024-25 from 9.4 percent the previous year. This slowdown highlights challenges across industries, including notable declines in the manufacturing sector.

The services sector experienced a modest uptick, with net sales growth marginally increasing to 12.7 percent. In contrast, the manufacturing sector saw a decrease to 5.1 percent, reflecting economic pressures. The report covers 3,100 non-government non-financial (NGNF) FDI companies, adhering to the Indian Accounting Standards (Ind-AS).

Investment sources primarily include Singapore, the US, and Mauritius, with the information and communication industry making up a significant portion of the services sector. Profitability saw a rise, supported by lower interest expenses and higher non-operating income, with the services sector outperforming manufacturing in post-tax profit growth.

(With inputs from agencies.)