Press Releases

(358 kb)
Date : Dec 31, 2018
India’s International Investment Position (IIP), September 2018

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

Key Features of India’s IIP in September 2018

  • Net claims of non-residents on India declined by US$ 18.5 billion from their level a quarter ago (Table 1).

  • The decline in net claims was due to a sharper fall in foreign owned assets in India as compared with that in the Indian residents’ overseas financial assets.

  • Indian residents’ financial assets abroad declined by US$ 3.5 billion over the level in the previous quarter, mainly due to reduction in reserve assets, even as overseas direct investments increased.

  • Foreign-owned assets in India declined by US$ 22.0 billion, mainly due to reduction in foreign direct investment (FDI) and portfolio investment; trade credit, however, increased during the quarter.

  • Depreciation of the Indian rupee against the US dollar contributed to the decline in net claims of non-residents during the quarter.

  • Reserve assets accounted for two-thirds of India’s international financial assets (Table 2).

  • The share of debt liabilities in total liabilities increased marginally during the quarter (Table 3).

  • The ratio of India’s international financial assets to international financial liabilities stood at 60.7 per cent in September 2018 (59.8 per cent in June 2018).

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1506


Table 1: Overall International Investment Position of India
(US $ billion)
Period Sep-17(R) Dec-17(PR) Mar-18(PR) June-18(PR) Sep-18(P)
Net IIP (A-B) -397.5 -422.3 -419.9 -410.4 -391.9
A. Assets 600.9 613.1 632.8 609.5 606.0
1. Direct Investment 153.5 155.2 157.4 160.7 163.0
2. Portfolio Investment 2.5 2.6 2.7 1.7 0.9
    2.1 Equity Securities 2.4 2.3 1.3 1.5 0.7
    2.2 Debt Securities 0.1 0.3 1.4 0.2 0.2
3. Other Investment 44.7 46.3 48.2 41.3 41.5
    3.1 Trade Credits 1.3 1.6 1.7 1.4 0.9
    3.2 Loans 6.0 5.6 8.2 7.0 7.1
    3.3 Currency & Deposits 19.2 20.8 20.8 16.3 16.6
    3.4 Other Assets 18.3 18.4 17.5 16.7 16.9
4. Reserve Assets 400.2 409.1 424.5 405.7 400.5
B. Liabilities 998.3 1035.4 1052.7 1019.9 997.9
1. Direct Investment 363.9 377.3 379.0 372.4 362.2
2. Portfolio Investment 254.0 267.7 272.4 254.5 238.1
    2.1 Equity Securities 150.1 155.7 155.1 144.4 135.2
    2.2 Debt securities 103.9 112.0 117.3 110.1 102.9
3. Other Investment 380.4 390.4 401.3 393.0 397.6
    3.1 Trade Credits 93.6 98.4 103.2 99.6 104.2
    3.2 Loans 156.4 156.1 159.9 157.6 158.3
    3.3 Currency & Deposits 118.3 123.5 126.5 124.5 122.1
    3.4 Other Liabilities 12.2 12.4 11.7 11.3 13.0
Memo item: Assets to Liability Ratio (%) 60.2 59.2 60.1 59.8 60.7
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 Sep-17(R) Dec-17(PR) Mar-17(PR) Jun-18(PR) Sep-18(P)
A. Assets          
1. Direct Investment 25.5 25.3 24.9 26.4 26.9
2. Portfolio Investment 0.4 0.4 0.4 0.3 0.1
3. Other Investment 7.4 7.6 7.6 6.8 6.9
4. Reserve Assets 66.6 66.7 67.1 66.6 66.1
Assets/Liabilities 100.0 100.0 100.0 100.0 100.0
B. Liabilities          
1. Direct Investment 36.5 36.4 36.0 36.5 36.3
2. Portfolio Investment 25.4 25.9 25.9 25.0 23.9
3. Other Investment 38.1 37.7 38.1 38.5 39.8

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period Sep-17(R) Dec-17(PR) Mar-17(PR) Jun-18(PR) Sep-18(P)
Non-Debt Liabilities 49.9 49.9 49.2 49.1 48.3
Debt Liabilities 50.1 50.1 50.8 50.9 51.7
Total 100.0 100.0 100.0 100.0 100.0

1 India’s quarterly IIP is disseminated with a one- quarter lag. The IIP for end- June 2018 was placed in the public domain on September 28, 2018.


2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Archives
Server 214
Top