Wh What can can we tell with we tell with to todays s FD FDI - PowerPoint PPT Presentation

Wh What can can we tell with we tell with to today’s ’s FD FDI data? Premila Nazareth Satyanand Founder, Foreigndirectinvestment.in and Nonresident Senior Fellow, NCAER EMSD Conference, New York, 19-20 April

Results of NCAER website survey ( % of 45 G-20, EU and OECD countries reporting the data below) FDI Inflows FD FDI Inward Stock FD Annual Total 98% 96% Country break-down 72% 76% Industry break-down 72% 73% FDI Outflows FD FDI Outward Stock FD Annual Total 80% 78% Country break-down 62% 63% Industry break-down 62% 63% Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics , 2016

Number of countries reporting the following data (2016 or latest year available) World Wo Developed De De Developing countries co co countries 155 37 102 Number of countries in category Inward flows by country break-down 126 37 73 Inward flows by industry break-down 122 36 71 Inward stock by country break-down 131 37 78 Inward stock by industry break-down 101 37 55 Outward flows by country break-down 68 37 20 Outward flows by industry break-down 63 36 20 Outward stock by country break-down 97 37 48 Outward stock by industry break-down 61 37 20 Source : Unpublished UNCTAD data

Number of countries reporting the following data (2016 or latest year available) Asia & As La Latin America ca & Af Afri rica So South-Eas East Oceani Oc nia the Caribbean th Eu Europe & & CIS 37 32 33 16 Number of countries in category Inward flows by country break-down 27 25 21 16 Inward flows by industry break- 29 21 21 15 down Inward stock by country break-down 32 19 27 16 Inward stock by industry break- 25 12 18 9 down Outward flows by country break- down 11 5 4 11 Outward flows by industry break- 11 6 3 7 down Outward stock by country break- 20 12 16 12 down Outward stock by industry break- 13 4 3 4 down Source: Unpublished UNCTAD data

EU EU-FA FATS UN UNCTAD MA MANUAL OE OECD BD-4 MS MSITS 1 Number of branches and subsidiaries Number of enterprises Number of enterprises 2 Turnover Sales/turnover Sales (turnover) and/or output Sales (turnover) and/or output 3 Production value Output 4 Value-added at factor cost Value-added Value-added Value-added 5 Exports/imports of goods/services Exports and imports Exports/imports of goods/services Exports/imports of goods/services 6 Total purchases of goods and services 7 Purchases of goods and services for resale in the same condition as received 8 Personnel costs Employee compensation Compensation of employees 9 Gross investment in tangible goods 10 Number of persons employed/ Employment Employment Employment number of employees 11 Total intra-mural R&D expenditure R&D expenditures R&D expenditures 12 Total number of R&D personnel Employment in R&D 13 Intra-group exports and imports of Intra-firm trade goods and services 14 Net operating surplus Net operating surplus 15 Earnings (distributed & reinvested) 16 Assets Assets 17 Net worth Net worth 18 Technology payments (royalties, fees) 19 Gross fixed capital formation 20 Taxes on income Taxes on income Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics , 2016

Number of countries reporting the following data (2015 or latest year available) Source: Unpublished UNCTAD data

List of FATS tables available on the Bureau of Economic Analysis website Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics , adapted from the Bureau of Economic Analysis website

Se Securit itie ies and d Exchange Board d of India dia (2012): Busin iness Respo ponsibilit ibility Re Reports 9 Bu Business Responsibility principles, adherence to which must be be repo ported d in de detail in Annual Repo port Ethics, transparency and accountability 1. Safe and environmentally-sustainable good and services 2. Employee well-being 3. Sensitivity to stakeholders, especially disadvantaged 4. Protect human rights 5. Respect, protect, and restore the environment 6. Influence policy responsibly 7. Inclusive growth and development 8. Provide value to customers and consumers 9.

} Source: Tata Motors Annual Report FY 2016-2017 , Pg 96

} Source: Hindalco Industries Annual Report FY 2016-2017 , Pg 46

St Studyin ing ESG SG Impact usin ing the FDI St Statis istic ics Rou oute … } Macrodata is rudimentary, especially in the developing world } Current global standards for Foreign Affiliate Statistics focus on the financial, not the societal, bottom line } Micro-data on individual firms is not easy to access St Studyin ing ESG SG Impact usin ing the Annual l Repor ort Rou oute… } No publicly-available, comprehensive ‘frame’ of outward foreign direct investors } Operations data for parent and overseas subsidiaries is primarily financial } Stepped-up ESG reporting is on parent company operations in the domestic market New New sta standards s ar are e need eeded ed at at both lev evel els