India Inc continues to remain heavily import-dependent for inputs

Growth in forex revenue continues to lag increase in forex expenses

Corporate India continues to remain heavily import-dependent for inputs. Listed Indian firms spent 35.5 per cent more foreign exchange (forex) revenue year-on-year (Y-o-Y) for importing goods and services, compared to a 26.2 per cent Y-o-Y growth in net sales reported by these companies in FY23.

As a result, the forex expenses to net sales ratio of 795 listed companies in Business Standard’s sample, excluding banks and finance firms, rose to an eight-year high of 30.6 per cent in FY23 from 28.5 per cent a year ago, and a low of 27.1 per cent in FY16. In comparison, the combined forex revenue