Today, the Reserve Bank released data relating to India’s International Investment Position for end-December 2023[1]. Key Features of India’s IIP in end-December 2023: -
Net claims of non-residents on India declined by US$ 12.2 billion during October-December 2023 to US$ 370.4 billion as at end-December 2023. -
The decline in net claims was due to the higher rise in Indian residents’ overseas financial assets (US$ 40.7 billion) as compared to the increase in foreign-owned assets in India (US$ 28.5 billion) (Table 1). -
Reserve assets recorded a significant rise (US$ 34.8 billion) and accounted for over 85 per cent of increase in foreign assets of Indian residents during Q3:2023-24. -
The rise in India’s foreign liabilities was attributed to higher inward direct investments, portfolio investments and loans taken by resident entities; even as trade credits recorded a marginal decline. -
Reserve assets accounted for 63.9 per cent of India’s international financial assets (Table 2). -
The share of debt liabilities in total external liabilities remained at its level a quarter ago (50.4 per cent) (Table 3). -
The ratio of India’s international financial assets to international financial liabilities improved to 72.4 per cent in December 2023 from 70.9 per cent a quarter ago. (Yogesh Dayal) Chief General Manager Press Release: 2023-2024/2143 Table 1: Overall International Investment Position of India | (US$ billion) | Period | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (P) | Net IIP (A-B) | -373.2 | -367.5 | -379.6 | -382.6 | -370.4 | A. Assets | 875.8 | 902.7 | 926.9 | 933.0 | 973.7 | 1. Direct Investment | 222.7 | 225.6 | 228.0 | 231.7 | 236.0 | 1.1 Equity and investment fund shares | 140.1 | 142.1 | 143.7 | 145.8 | 148.9 | 1.2 Debt instruments | 82.6 | 83.5 | 84.3 | 85.9 | 87.1 | 2. Portfolio Investment | 10.9 | 11.0 | 11.3 | 11.6 | 11.3 | 2.1 Equity and investment fund shares | 8.6 | 5.0 | 8.7 | 7.9 | 8.4 | 2.2 Debt securities | 2.3 | 6.0 | 2.6 | 3.7 | 2.9 | 3. Other Investment | 79.5 | 87.6 | 92.5 | 102.0 | 103.9 | 3.1 Trade Credits | 26.1 | 27.5 | 29.7 | 30.9 | 31.7 | 3.2 Loans | 8.6 | 10.7 | 14.5 | 9.7 | 16.3 | 3.3 Currency and Deposits | 27.1 | 30.5 | 30.5 | 43.4 | 38.0 | 3.4 Other Assets | 17.7 | 18.9 | 17.8 | 18.0 | 17.9 | 4. Reserve Assets | 562.7 | 578.5 | 595.1 | 587.7 | 622.5 | B. Liabilities | 1249.0 | 1270.2 | 1306.5 | 1315.6 | 1344.1 | 1. Direct Investment | 510.7 | 523.3 | 532.3 | 528.6 | 536.9 | 1.1 Equity and investment fund shares | 482.1 | 493.9 | 501.4 | 497.7 | 505.7 | 1.2 Debt instruments | 28.6 | 29.4 | 30.9 | 30.9 | 31.2 | 2. Portfolio Investment | 244.2 | 243.6 | 258.6 | 259.4 | 269.2 | 2.1 Equity and investment fund shares | 140.4 | 139.0 | 152.9 | 154.6 | 161.2 | 2.2 Debt securities | 103.8 | 104.6 | 105.7 | 104.8 | 108.0 | 3. Other Investment | 494.1 | 503.3 | 515.6 | 527.6 | 538.0 | 3.1 Trade Credits | 124.6 | 124.3 | 119.3 | 124.7 | 122.5 | 3.2 Loans | 196.8 | 202.6 | 207.1 | 208.9 | 215.0 | 3.3 Currency and Deposits | 136.1 | 141.1 | 144.1 | 146.2 | 149.3 | 3.4 Other Assets | 36.6 | 35.3 | 45.1 | 47.8 | 51.2 | Memo Item: Assets to Liability ratio (%) | 70.1 | 71.1 | 71.0 | 70.9 | 72.4 | 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 | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (P) | A. Assets | 1. Direct Investment | 25.4 | 25.0 | 24.6 | 24.8 | 24.2 | 2. Portfolio Investment | 1.2 | 1.2 | 1.2 | 1.3 | 1.2 | 3. Other Investment | 9.1 | 9.7 | 10.0 | 10.9 | 10.7 | 4. Reserve Assets | 64.3 | 64.1 | 64.2 | 63.0 | 63.9 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 40.9 | 41.2 | 40.7 | 40.2 | 40.0 | 2. Portfolio Investment | 19.5 | 19.2 | 19.8 | 19.7 | 20.0 | 3. Other Investment | 39.6 | 39.6 | 39.5 | 40.1 | 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 | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (P) | Non-Debt Liabilities | 49.8 | 49.8 | 50.1 | 49.6 | 49.6 | Debt Liabilities | 50.2 | 50.2 | 49.9 | 50.4 | 50.4 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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