Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2023[1]. Key Features of India’s IIP in end-September 2023: -
Net claims of non-residents on India rose marginally during Q2:2023-24 to US$ 380.9 billion in September 2023. -
Foreign-owned financial assets in India recorded higher increase (US$ 7.4 billion) vis-à-vis Indian residents’ overseas financial assets (US$ 6.0 billion), which led to the increase in net claims of non-residents (Table 1). -
Indian residents’ foreign assets increased during July-September 2023 due to rise in currency and deposits as well as overseas direct investment, even though reserve assets and loans declined during the quarter. -
Despite some reduction in direct investment liabilities, India’s total foreign liabilities rose during Q2:2023-24 due to increase in portfolio and other investments. -
Reserve assets accounted for 63.0 per cent of India’s international financial assets at end-September 2023 (Table 2). -
Variation in the exchange rate of the Indian rupee vis-à-vis other currencies impacted the change in liabilities, when valued in US dollar terms. -
The ratio of India’s international financial assets to international financial liabilities improved to 71.0 per cent in September 2023 (68.7 per cent a year ago). -
The share of debt liabilities in total external liabilities rose marginally to 50.3 per cent in September 2023 (49.8 per cent a year ago) (Table 3) (Yogesh Dayal)
Chief General Manager Press Release: 2023-2024/1573
| Table 1: Overall International Investment Position of India | | (US$ billion) | | Period | Sep-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (P) | | Net IIP (A-B) | -386.5 | -373.1 | -367.4 | -379.5 | -380.9 | | A. Assets | 846.8 | 875.8 | 902.7 | 926.8 | 932.8 | | 1. Direct Investment | 217.2 | 222.7 | 225.5 | 227.8 | 231.3 | | 1.1 Equity and investment fund shares | 136.2 | 140.1 | 142.0 | 143.5 | 145.3 | | 1.2 Debt instruments | 81.0 | 82.6 | 83.5 | 84.3 | 86.0 | | 2. Portfolio Investment | 11.0 | 10.9 | 11.0 | 11.3 | 11.6 | | 2.1 Equity and investment fund shares | 6.3 | 8.6 | 5.0 | 8.7 | 7.9 | | 2.2 Debt securities | 4.7 | 2.3 | 6.0 | 2.6 | 3.7 | | 3. Other Investment | 85.9 | 79.5 | 87.7 | 92.6 | 102.2 | | 3.1 Trade Credits | 24.6 | 26.1 | 27.5 | 29.7 | 31.1 | | 3.2 Loans | 8.1 | 8.6 | 10.7 | 14.5 | 9.7 | | 3.3 Currency and Deposits | 33.5 | 27.1 | 30.5 | 30.6 | 43.4 | | 3.4 Other Assets | 19.7 | 17.7 | 19.0 | 17.8 | 18.0 | | 4. Reserve Assets | 532.7 | 562.7 | 578.5 | 595.1 | 587.7 | | B. Liabilities | 1,233.3 | 1,248.9 | 1,270.1 | 1,306.3 | 1,313.7 | | 1. Direct Investment | 510.2 | 510.7 | 523.3 | 532.3 | 528.6 | | 1.1 Equity and investment fund shares | 482.0 | 482.1 | 493.9 | 501.4 | 497.7 | | 1.2 Debt instruments | 28.2 | 28.6 | 29.4 | 30.9 | 30.9 | | 2. Portfolio Investment | 244.3 | 244.2 | 243.5 | 258.4 | 259.4 | | 2.1 Equity and investment fund shares | 137.0 | 140.5 | 139.0 | 152.9 | 154.6 | | 2.2 Debt securities | 107.3 | 103.7 | 104.5 | 105.5 | 104.8 | | 3. Other Investment | 478.8 | 494.0 | 503.3 | 515.6 | 525.7 | | 3.1 Trade Credits | 123.2 | 124.6 | 124.3 | 119.3 | 122.8 | | 3.2 Loans | 190.2 | 196.7 | 202.5 | 207.1 | 209.0 | | 3.3 Currency and Deposits | 135.6 | 136.1 | 141.1 | 144.1 | 146.1 | | 3.4 Other Assets | 29.8 | 36.6 | 35.4 | 45.1 | 47.8 | | Memo Item: Assets to Liability ratio (%) | 68.7 | 70.1 | 71.1 | 70.9 | 71.0 | Note:
1. PR: Partially revised, P: Provisional
2. 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-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (P) | | A. Assets | | 1. Direct Investment | 25.7 | 25.4 | 25.0 | 24.6 | 24.8 | | 2. Portfolio Investment | 1.3 | 1.2 | 1.2 | 1.2 | 1.2 | | 3. Other Investment | 10.1 | 9.1 | 9.7 | 10.0 | 11.0 | | 4. Reserve Assets | 62.9 | 64.3 | 64.1 | 64.2 | 63.0 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 41.4 | 40.9 | 41.2 | 40.7 | 40.2 | | 2. Portfolio Investment | 19.8 | 19.6 | 19.2 | 19.8 | 19.8 | | 3. Other Investment | 38.8 | 39.5 | 39.6 | 39.5 | 40.0 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Sep-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (P) | | Non-Debt Liabilities | 50.2 | 49.9 | 49.8 | 50.1 | 49.7 | | Debt Liabilities | 49.8 | 50.1 | 50.2 | 49.9 | 50.3 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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