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Date : Sep 28, 2018
India’s International Investment Position (IIP), June 2018

Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2018.

Key Features of India’s IIP in June 2018

  • Net claims of non-residents on India declined by US$ 13.1 billion from their level at the end of the previous quarter.

  • Indian residents’ overseas financial assets as well as foreign owned assets in India declined during the quarter, with the decline in the latter being larger (Table 1).

  • Of the decline in Indian residents’ foreign assets, as much as 92.2 per cent occurred through reduction in reserve assets, which exceeded the increase in overseas direct during the quarter.

  • The decline in foreign-owned assets in India was broad-based across foreign direct investment, portfolio investment, trade credit, commercial loans as well as currency and deposits.

  • Large valuation effects associated with the depreciation of the Indian Rupee against the US dollar during the quarter impacted net claims of non-residents.

  • Reserve assets accounted for two-thirds of India’s international financial assets (Table 2); debt and non-debt liabilities had almost equal share in total liabilities (Table 3).

  • The ratio of India’s international financial assets to international financial liabilities stood at 60.1 per cent in June 2018 (59.2 per cent a year ago).

Table 1: Overall International Investment Position of India
(US $ billion)
Period Jun-17(R) Sep-17(PR) Dec-17(PR) Mar-18(PR) June-18(P)
Net IIP (A-B) -400.8 -397.5 -422.0 -419.5 -406.4
A. Assets 582.3 600.9 613.1 632.8 612.4
1. Direct Investment 151.2 153.5 155.2 157.4 160.7
2. Portfolio Investment 2.1 2.5 2.6 2.7 1.7
    2.1 Equity Securities 2.0 2.4 2.3 1.2 1.5
    2.2 Debt Securities 0.1 0.1 0.3 1.5 0.2
3. Other Investment 42.4 44.7 46.3 48.2 44.3
    3.1 Trade Credits 1.2 1.3 1.6 1.7 1.4
    3.2 Loans 5.2 6.0 5.6 8.2 8.3
    3.3 Currency & Deposits 18.1 19.2 20.8 20.8 16.3
    3.4 Other Assets 18.0 18.3 18.4 17.5 18.3
4. Reserve Assets 386.5 400.2 409.1 424.5 405.7
B. Liabilities 983.1 998.4 1035.1 1052.3 1018.8
1. Direct Investment 353.4 364.3 377.6 379.3 372.2
2. Portfolio Investment 251.1 254.0 267.7 272.4 254.5
    2.1 Equity Securities 154.9 150.1 155.7 155.1 144.4
    2.2 Debt securities 96.2 103.9 112.0 117.3 110.1
3. Other Investment 378.6 380.2 389.8 400.6 392.1
    3.1 Trade Credits 89.6 93.6 98.4 103.2 99.6
    3.2 Loans 158.2 156.1 155.5 159.3 157.7
    3.3 Currency & Deposits 118.5 118.3 123.5 126.5 124.5
    3.4 Other Liabilities 12.3 12.2 12.4 11.7 10.3
Memo item: Assets to Liability Ratio (%) 59.2 60.2 59.2 60.1 60.1
R: Revised PR: Partially revised P: Provisional;
The sum of the constituent items may not add to the total due to rounding off.

Table 2: Composition of International Financial Assets and Liabilities of India
(per cent)
Period Jun-17(R) Sep-17(PR) Dec-17(PR) Mar-17(PR) Jun-18(P)
A. Assets          
1. Direct Investment 26.0 25.6 25.3 24.9 26.2
2. Portfolio Investment 0.4 0.4 0.4 0.4 0.3
3. Other Investment 7.2 7.4 7.6 7.6 7.3
4. Reserve Assets 66.4 66.6 66.7 67.1 66.2
Assets/Liabilities 100.0 100.0 100.0 100.0 100.0
B. Liabilities          
1. Direct Investment 35.9 36.5 36.5 36.0 36.5
2. Portfolio Investment 25.6 25.4 25.9 25.9 25.0
3. Other Investment 38.5 38.1 37.6 38.1 38.5

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period Jun-17(R) Sep-17(PR) Dec-17(PR) Mar-17(PR) Jun-18(P)
Non-Debt Liabilities 50.1 49.9 50.0 49.3 49.2
Debt Liabilities 49.9 50.1 50.0 50.7 50.8
Total 100.0 100.0 100.0 100.0 100.0

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/734


1 India’s quarterly IIP is disseminated with a one- quarter lag. The IIP for end- March 2018 was placed in the public domain on June 29, 2018.


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