FDI buoyancy missing in capex of listed MNCs

MNCs have cut back on fresh investment despite a sharp improvement in their profitability

The buoyancy in foreign direct investment (FDI) flows into India is missing in the capital expenditure figures of multinational companies (MNCs) listed in the country.
 
The combined capital expenditure by the listed Indian subsidiaries of global majors grew at a compounded annual rate of 2.4 per cent during the three years ending 2015-16, sharply down from the 12.9 per cent annualised growth in the previous five years. In contrast, inward FDI grew at a compounded annual rate of 18.6 per cent during the 2012-13 to 2015-16 period, according to Reserve Bank of India data. India received FDI worth $44.9