Finance minister Nirmala Sitharaman on Monday ducked a question on the steady exodus of foreign companies from India.

The government was asked in the Lok Sabha “whether between 2018 and 2023 (till March), 469 foreign companies started operations in India as compared to 559 leaving the country”.

She said the question pertains to foreign companies that have opened or closed their place of business in India under Section 380 of the Companies Act, 2013 from 2018 to 2023 (till January).

“However, Foreign companies can invest in India not only by way of opening place of business in India but also through Indian subsidiaries, which are Indian companies but subsidiary of foreign holding companies.

"During the period FY 2018-19 to FY 2022-23 (up to November), 7946 foreign companies have registered their Indian subsidiary company.”

Sitharaman said “for a company starting operations through Indian subsidiaries or establishing or closing place of business are matters of commercial business decision taken by the entity.

"These depend on a host of factors such as viability of operations, sectoral strategy, global priorities, market size, capital and resource allocation within the company as well as the decision of a particular business entity whether to operate in different geographical areas or not.

"The increase in the foreign direct investment indicates the confidence of the foreign investors in the business atmosphere of the country,” the finance minister said.