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 Table 1: Overall International Investment Position of India | (US $ billion) | Period | Dec-18(R) | Mar-19(PR) | Jun-19(PR) | Sep-19(PR) | Dec-19(P) | Net IIP (A-B) | -426.8 | -436.5 | -451.5 | -436.9 | -426.5 | A. Assets | 606.4 | 642.1 | 662.3 | 669.1 | 697.4 | 1. Direct Investment | 166.6 | 170.0 | 173.0 | 175.4 | 178.7 | 2. Portfolio Investment | 2.7 | 4.7 | 5.0 | 4.5 | 4.8 | 2.1 Equity Securities | 1.4 | 0.6 | 1.8 | 2.3 | 2.6 | 2.2 Debt Securities | 1.3 | 4.1 | 3.2 | 2.2 | 2.2 | 3. Other Investment | 41.6 | 54.5 | 54.5 | 55.4 | 54.0 | 3.1 Trade Credits | 0.3 | 0.9 | 2.1 | 1.7 | 2.3 | 3.2 Loans | 6.6 | 9.9 | 9.8 | 7.9 | 6.2 | 3.3 Currency and Deposits | 17.2 | 25.2 | 24.2 | 27.6 | 27.1 | 3.4 Other Assets | 17.5 | 18.6 | 18.4 | 18.2 | 18.4 | 4. Reserve Assets | 395.6 | 412.9 | 429.8 | 433.7 | 459.9 | B. Liabilities | 1,033.2 | 1,078.6 | 1,113.8 | 1,106.0 | 1,123.9 | 1. Direct Investment | 386.2 | 399.2 | 417.6 | 417.1 | 426.9 | 2. Portfolio Investment | 245.8 | 260.3 | 266.8 | 260.0 | 266.7 | 2.1 Equity Securities | 138.0 | 147.5 | 151.1 | 144.0 | 148.9 | 2.2 Debt securities | 107.8 | 112.8 | 115.7 | 116.0 | 117.8 | 3. Other Investment | 401.2 | 419.1 | 429.3 | 428.9 | 430.3 | 3.1 Trade Credits | 103.7 | 105.2 | 107.2 | 106.6 | 105.2 | 3.2 Loans | 160.3 | 167.9 | 173.7 | 174.8 | 177.3 | 3.3 Currency and Deposits | 126.0 | 130.6 | 133.8 | 133.1 | 133.3 | 3.4 Other Liabilities | 11.2 | 15.3 | 14.5 | 14.4 | 14.5 | Memo item: Assets to Liability Ratio (%) | 58.7 | 59.5 | 59.5 | 60.5 | 62.1 | 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 | Dec-18(R) | Mar-19(PR) | Jun-19(PR) | Sep-19(PR) | Dec-19(P) | A. Assets | | | | | | 1. Direct Investment | 26.9 | 27.5 | 26.5 | 26.1 | 26.2 | 2. Portfolio Investment | 0.4 | 0.4 | 0.7 | 0.8 | 0.7 | 3. Other Investment | 6.8 | 6.9 | 8.5 | 8.2 | 8.3 | 4. Reserve Assets | 65.9 | 65.2 | 64.3 | 64.9 | 64.8 | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 36.4 | 37.4 | 37 | 37.5 | 37.7 | 2. Portfolio Investment | 23.9 | 23.8 | 24.1 | 24 | 23.5 | 3. Other Investment | 39.7 | 38.8 | 38.9 | 38.5 | 38.8 | Table 3: Share of External Debt and Non-Debt Liabilities of India | (per cent) | Period | Dec-18(R) | Mar-19(PR) | Jun-19(PR) | Sep-19(PR) | Dec-19(P) | Non-Debt Liabilities | 49.1 | 49.1 | 49.5 | 49.1 | 49.2 | Debt Liabilities | 50.9 | 50.9 | 50.5 | 50.9 | 50.8 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | |