Today, the Reserve Bank released data relating to India’s International Investment Position (IIP) at end-December 2019.

Key Features of India’s IIP in December 2019

• Net claims of non-residents on India declined by US$ 10.4 billion to US $ 426.5 billion during the quarter ended December 2019 (Table 1).

• The decline in net claims resulted from higher increase of US$ 28.3 billion in Indian residents’ overseas financial assets during the quarter in comparison with a rise of US$ 17.9 billion in foreign owned assets in India.

• Increase in reserve assets (US $ 26.2 billion) was the dominant contributor to higher increase in Indian residents’ overseas financial assets, followed by overseas direct investments (US $ 3.3 billion).

• Direct investments and portfolio investments liabilities increased by US $ 9.8 billion and US $ 6.7 billion, respectively, during the quarter.

• Depreciation of the Indian rupee against the US dollar during the period contributed to the reduction in India’s liabilities, when valued in US dollar terms.

• Reserve assets accounted for nearly 65 per cent of total foreign assets (Table 2).

• During the quarter, the share of debt liabilities in total liabilities remained around its level a quarter ago (Table 3).

• The ratio of India’s international financial assets to international financial liabilities improved to 62.1 per cent at end-December 2019 (60.5 per cent in September 2019).

Ajit Prasad
Director   

Press Release: 2019-2020/2160

¹ India’s quarterly IIP is disseminated with a quarter lag. The IIP for end-September 2019 was placed in the public domain on December 31, 2019.