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Date : Jun 28, 2019
India’s International Investment Position (IIP), March 2019

Today, the Reserve Bank released data relating to India’s International Investment Position as at end-March 2019.

Key Features of India’s IIP in March 2019

I. Quarterly Variations:

  • Net claims of non-residents on India increased to US$ 436.4 billion reflecting an increase of US$ 45.2 billion in foreign-owned assets in India vis-à-vis an increase of US$ 35.7 billion in Indian residents’ financial assets abroad (Table 1).

  • The increase in foreign-owned assets in India was primarily due to portfolio investment, direct investment and other investment, particularly loans.

  • With the dollar-rupee swap conducted by the Reserve Bank in March, reserve assets increased sizably during the quarter (Table 3).

  • Debt and non-debt liabilities owed to non-residents had almost equal shares in total liabilities (Table 4).

  • The ratio of India’s international financial assets to international financial liabilities stood at 59.5 per cent at end-March 2019 (58.7 per cent in December 2018).

II. Annual Variations

  • International financial assets of Indian residents increased by US$ 8.4 billion during 2018-19 (Table 1); while reserve assets declined by US$ 11.6 billion, direct investment and other investment overseas (trade credit, loans and currency and deposits) moved up by US$ 12.6 billion and US$ 6.3 billion, respectively.

  • International financial liabilities increased by US$ 26.2 billion with direct investment and other investment increasing by US$ 20.2 billion and US$ 18.1 billion, respectively, while portfolio investment declined by US$ 12.2 billion.

  • Overall, net claims of non-residents on India increased by US$ 17.9 billion.

III. Ratio of International Financial Assets and Liabilities to GDP

  • The ratio of total overseas financial assets of Indian residents declined to 23.4 per cent of GDP in March 2019, from 24.1 per cent a year ago (Table 2).

  • The ratio of total claims of non-residents to GDP declined to 39.2 per cent in March 2019 from 40.0 per cent a year ago.

  • The ratio of net IIP of India to GDP remained unchanged from a year ago at (-)15.9 per cent in March 2019.

Yogesh Dayal
Chief General Manager

Press Release : 2018-2019/3078


Table 1: Overall International Investment Position of India
(US $ billion)
Period Mar-18(PR) Jun-18(PR) Sep-18(PR) Dec-18(PR) Mar-19(P)
Net IIP -418.5 -407.5 -387.3 -426.9 -436.4
A. Assets 633.7 611.1 608.2 606.4 642.1
1. Direct Investment 157.4 160.9 163.5 166.6 170.0
2. Portfolio Investment 3.6 3.1 2.6 2.7 4.7
  2.1 Equity Securities 2.1 1.9 1.8 1.4 0.6
  2.2 Debt Securities 1.5 1.1 0.8 1.3 4.1
3. Other Investment 48.2 41.3 41.5 41.6 54.5
  3.1 Trade Credits 1.7 1.4 0.9 0.3 0.9
  3.2 Loans 8.2 7.0 7.1 6.6 9.9
  3.3 Currency and Deposits 20.8 16.3 16.6 17.2 25.2
  3.4 Other Assets 17.5 16.7 16.9 17.5 18.5
4. Reserve Assets 424.5 405.7 400.5 395.6 412.9
B. Liabilities 1052.3 1018.5 995.5 1033.3 1078.5
1. Direct Investment 379.0 372.3 362.1 386.2 399.2
2. Portfolio Investment 272.2 254.3 237.9 245.8 260.0
  2.1 Equity Securities 155.1 144.4 135.2 138.1 147.5
  2.2 Debt securities 117.0 109.8 102.7 107.8 112.5
3. Other Investment 401.2 391.9 395.5 401.3 419.3
  3.1 Trade Credits 103.2 99.6 104.3 103.6 105.2
  3.2 Loans 159.8 156.5 157.6 160.5 168.1
  3.3 Currency and Deposits 126.5 124.5 122.1 126.0 130.6
  3.4 Other Liabilities 11.7 11.3 11.5 11.2 15.2
Memo item: Assets to Liability Ratio (%) 60.2 60.0 61.1 58.7 59.5
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: Ratios of External Financial Assets and Liabilities to GDP
(per cent)
Period Mar-17 (R) Mar-18 (PR) Mar-19(P)
Net IIP (Assets - Liabilities) -16.4 -15.9 -15.9
A. Assets 24.1 24.1 23.4
1. Direct Investment Abroad 6.3 6.0 6.2
2. Portfolio Investment 0.1 0.1 0.2
  2.1 Equity Securities 0.1 0.1 -
  2.2 Debt Securities - 0.1 0.1
3. Other Investment 2.1 1.8 2.0
  3.1 Trade Credits 0.1 0.1 -
  3.2 Loans 0.3 0.3 0.4
  3.3 Currency and Deposits 0.9 0.8 0.9
  3.4 Other Assets 0.8 0.7 0.7
4. Reserve Assets 15.6 16.2 15.0
B. Liabilities 40.4 40.0 39.2
1. Direct Investment in India 14.5 14.4 14.5
2. Portfolio Investment 10.1 10.4 9.5
  2.1 Equity Securities 6.5 5.9 5.4
  2.2 Debt securities 3.6 4.5 4.1
3. Other Investment 15.9 15.3 15.3
  3.1 Trade Credits 3.8 3.9 3.8
  3.2 Loans 6.7 6.1 6.1
  3.3 Currency and Deposits 4.9 4.8 4.8
  3.4 Other Liabilities 0.5 0.4 0.6
Note - : Negligible.

Table 3: Composition of International Financial Assets and Liabilities of India
(per cent)
Period Mar-18(PR) Jun-18(PR) Sep-18(PR) Dec-18(PR) Mar-19(P)
A. Assets          
1. Direct Investment 24.8 26.3 26.9 27.5 26.5
2. Portfolio Investment 0.6 0.5 0.4 0.4 0.7
3. Other Investment 7.6 6.8 6.8 6.9 8.5
4. Reserve Assets 67.0 66.4 65.9 65.2 64.3
  Assets/Liabilities 100.0 100.0 100.0 100.0 100.0
B. Liabilities
1. Direct Investment 36.0 36.6 36.4 37.4 37.0
2. Portfolio Investment 25.9 25.0 23.9 23.8 24.1
3. Other Investment 38.1 38.5 39.7 38.8 38.9

Table 4: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period Mar-18(PR) Jun-18(PR) Sep-18(PR) Dec-18(PR) Mar-19(P)
Non-Debt Liabilities 49.3 49.2 48.4 49.1 49.1
Debt Liabilities 50.7 50.8 51.6 50.9 50.9
Total 100.0 100.0 100.0 100.0 100.0

1 India’s quarterly IIP is disseminated with a quarter lag. The IIP for end-December 2018 was placed in the public domain on March 29, 2019.


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