RBI releases FLA census results: FDI to ODI ratio drops to 4.2 times

In short: FPAC

FFacts

RBI released provisional results of the 2025-26 round of the annual FLA census covering cross-border liabilities and assets of Indian companies, LLPs, AIFs and partnership firms with inward or outward direct investment.

PProvisions and law

Annual census on foreign liabilities and assets (FLA) of Indian direct investment entities; unlisted equity valued by the own fund book value (OFBV) method prescribed by the IMF Balance of Payments manual.

AAnalysis

43,123 entities reported FDI and/or ODI as on end-March 2026, around 97 per cent unlisted; inward FDI to ODI moderated to 4.2 times from 5.5 times a year ago; USA (16.5 per cent), Mauritius (14.5 per cent), Singapore (13.7 per cent) and UK (10.8 per cent) were top FDI sources, and manufacturing held 50.1 per cent of FDI equity at market value.

CConclusion

If your company, LLP, AIF or firm holds foreign investment either way, the FLA census is the annual return you are counted in, so keep your foreign assets and liabilities data current.

What to do

1. InformationCheck whether your entity had any inward FDI or outward direct investment outstanding as on end-March, including trade credit, loans and deposits with non-residents.
2. DiscussionDecide with your CA how unlisted equity is to be valued and which foreign liability and asset heads apply to you.
3. DeliverablesMaintain a year-end schedule of foreign liabilities and assets to support FLA reporting.

Steps follow IDFD: Information, Discussion, Forms, Deliverables.