Today, the Reserve Bank released data relating to India’s International Investment Position at end-December 2020. Key Features of India’s IIP in December 2020 -
Net claims of non-residents on India increased by US$ 3.1 billion from their level at the end of the previous quarter (Table 1). -
Higher increase in foreign-owned assets in India (US$ 52.3 billion) vis-à-vis Indian residents’ overseas financial assets (US$ 49.2 billion) resulted in the rise in India’s net foreign liabilities during the quarter. -
Reserve assets accounted for over two-thirds of India’s international financial assets (Table 2). -
Foreign direct investment (FDI) and portfolio equity investment dominated the rise in India’s foreign liabilities; the share of non-debt liabilities in total external liabilities increased to 52.4 per cent (50.8 per cent at end-September 2020) (Table 3). -
The ratio of India’s international financial assets to international financial liabilities improved to 71.4 per cent in December 2020 from 62.1 per cent a year ago. (Yogesh Dayal)
Chief General Manager Press Release: 2020-2021/1332
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Dec-19(R) | Mar-20 (PR) | June-20 (PR) | Sep-20 (PR) | Dec-20 (P) | | Net IIP (A-B) | -425.1 | -375.2 | -343.8 | -337.5 | -340.6 | | A. Assets | 697.9 | 717.0 | 749.6 | 802.9 | 852.1 | | 1. Direct Investment | 179.7 | 183.0 | 185.9 | 188.3 | 191.3 | | 2. Portfolio Investment | 4.8 | 3.8 | 4.3 | 5.0 | 5.5 | | 2.1 Equity Securities | 2.6 | 0.6 | 0.8 | 1.9 | 1.7 | | 2.2 Debt Securities | 2.2 | 3.2 | 3.5 | 3.1 | 3.8 | | 3. Other Investment | 53.4 | 52.4 | 53.7 | 64.9 | 69.5 | | 3.1 Trade Credits | 2.2 | 1.5 | 1.3 | 2.9 | 3.3 | | 3.2 Loans | 6.2 | 6.7 | 7.4 | 9.0 | 10.6 | | 3.3 Currency and Deposits | 27.1 | 26.0 | 27.7 | 34.9 | 37.3 | | 3.4 Other Assets | 17.9 | 18.2 | 17.2 | 18.1 | 18.3 | | 4. Reserve Assets | 459.9 | 477.8 | 505.7 | 544.7 | 585.8 | | B. Liabilities | 1123.0 | 1092.2 | 1093.4 | 1140.4 | 1192.7 | | 1. Direct Investment | 426.9 | 418.2 | 419.4 | 456.0 | 480.3 | | 2. Portfolio Investment | 266.7 | 246.7 | 241.6 | 253.3 | 274.1 | | 2.1 Equity Securities | 148.9 | 134.8 | 139.0 | 149.1 | 170.7 | | 2.2 Debt securities | 117.8 | 111.9 | 102.6 | 104.2 | 103.4 | | 3. Other Investment | 429.3 | 427.2 | 432.5 | 431.1 | 438.3 | | 3.1 Trade Credits | 105.2 | 104.3 | 104.0 | 102.2 | 102.6 | | 3.2 Loans | 177.3 | 179.6 | 184.5 | 180.6 | 183.5 | | 3.3 Currency and Deposits | 133.3 | 130.8 | 132.9 | 137.5 | 140.7 | | 3.4 Other Liabilities | 13.5 | 12.6 | 11.0 | 10.8 | 11.5 | | Memo item: Assets to Liability Ratio (%) | 62.1 | 65.7 | 68.6 | 70.4 | 71.4 | 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-19 (R) | Mar-20 (PR) | June-20 (PR) | Sep-20 (PR) | Dec-20 (P) | | A. Assets | | | | | | | 1. Direct Investment | 25.7 | 25.5 | 24.8 | 23.5 | 22.5 | | 2. Portfolio Investment | 0.7 | 0.5 | 0.6 | 0.6 | 0.6 | | 3. Other Investment | 7.7 | 7.4 | 7.1 | 8.1 | 8.2 | | 4. Reserve Assets | 65.9 | 66.6 | 67.5 | 67.8 | 68.7 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 38.0 | 38.3 | 38.4 | 40.0 | 40.3 | | 2. Portfolio Investment | 23.7 | 22.6 | 22.1 | 22.2 | 23.0 | | 3. Other Investment | 38.3 | 39.1 | 39.5 | 37.8 | 36.7 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Dec-19 (R) | Mar-20 (PR) | June-20 (PR) | Sep-20 (PR) | Dec-20 (P) | | Non-Debt Liabilities | 49.3 | 48.5 | 48.9 | 50.8 | 52.4 | | Debt Liabilities | 50.7 | 51.5 | 51.1 | 49.2 | 47.6 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
1India’s quarterly IIP is disseminated with a quarter lag. The IIP for end-September 2020 was placed in the public domain on December 30, 2020. | |