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Date : Jun 25, 2024
India’s International Investment Position (IIP), March 2024

Today, the Reserve Bank released data relating to India’s International Investment Position for end-March 2024[1].

Key Features

IIP during January-March 2024:

  • Net claims of non-residents on India declined by US$ 6.4 billion during Q4:2023-24 to US$ 361.7 billion as at end-March 2024.

  • Indian residents’ overseas financial assets recorded higher rise (US$ 38.1 billion) as compared to that in the foreign-owned assets in India (US$ 31.7 billion), which led to the decline in net claims of non-residents during the quarter (Table 1).

  • The rise in India’s foreign liabilities was attributed to higher inward direct investments, portfolio investments, loans as well as currency and deposits taken by resident entities even as trade credits recorded a marginal decline.

  • Increase in the reserve assets (US$ 23.9 billion) was the dominant component of the rise in Indian residents’ overseas financial assets during January-March 2024, followed by currency and deposits, and overseas direct investments.

  • On an outstanding basis, reserve assets accounted for 62.9 per cent of India’s international financial assets in March 2024 (Table 3).

  • The ratio of India’s international assets to international liabilities improved to 74.0 per cent in March 2024 from 72.9 per cent a quarter ago.

  • The share of debt liabilities in total external liabilities increased marginally during the quarter and stood at 51.1 per cent in March 2024 (Table 4).

IIP during April-March 2023-24:

  • During 2023-24, the net claims of non-residents declined by US$ 5.5 billion on the back of higher rise in India’s external financial assets (US $ 109.8 billion) vis-à-vis external financial liabilities (US $ 104.3 billion) (Table 1).

  • Reserve assets accounted for 62 per cent of the increase in total overseas financial assets of residents: currency and deposits, and overseas direct investments were other major components.

  • Inward portfolio and direct investments as well as loans accounted for over three-fourths of the rise in foreign liabilities during the year.

  • Variation in the exchange rate of rupee vis-a-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 increased to 74.0 per cent in March 2024 from 71.4 per cent a year ago.

Ratio of International Financial Assets and Liabilities to Gross Domestic Product (GDP):

  • As a ratio to GDP (at current market prices), India’s reserve assets and residents’ overseas financial assets as well as liabilities increased during 2023-24 (Table 2).

  • The ratio of net claims of non-residents on India to GDP improved to (-)10.3 per cent in March 2024 from (-)11.3 per cent a year ago, and (-)11.6 per cent two years ago.

(Puneet Pancholy)  
Chief General Manager

Press Release: 2024-2025/560


Table 1: Overall International Investment Position of India
(US$ billion)
Period Mar-23 (PR) Jun-23 (PR) Sep-23 (PR) Dec-23 (PR) Mar-24 (P)
Net IIP (A-B) -367.2 -378.9 -382.0 -368.1 -361.7
A. Assets 918.5 942.6 946.1 990.2 1,028.3
  1. Direct Investment 225.6 228.2 232.1 236.5 242.2
    1.1 Equity and investment fund shares 142.1 143.9 146.2 149.4 153.3
    1.2 Debt instruments 83.5 84.3 85.9 87.1 88.9
  2. Portfolio Investment 13.1 13.5 11.0 10.6 10.3
    2.1 Equity and investment fund shares 7.4 11.5 7.9 8.4 8.5
    2.2 Debt securities 5.7 2.0 3.1 2.2 1.8
  3. Other Investment 101.4 105.8 115.3 120.6 129.4
    3.1 Trade Credits 27.5 29.7 30.9 31.7 33.5
    3.2 Loans 9.3 13.0 8.3 14.8 13.6
    3.3 Currency and Deposits 33.0 33.1 45.8 44.5 52.8
    3.4 Other Assets 31.6 30.0 30.3 29.6 29.5
  4. Reserve Assets 578.4 595.1 587.7 622.5 646.4
B. Liabilities 1,285.7 1,321.5 1,328.1 1,358.3 1,390.0
  1. Direct Investment 523.3 532.3 528.5 536.8 542.5
    1.1 Equity and investment fund shares 493.9 501.4 497.6 505.6 511.1
    1.2 Debt instruments 29.4 30.9 30.9 31.2 31.4
  2. Portfolio Investment 243.6 258.6 259.4 269.2 283.8
    2.1 Equity and investment fund shares 139.0 152.9 154.6 161.2 168.7
    2.2 Debt securities 104.6 105.7 104.8 108.0 115.1
  3. Other Investment 518.8 530.6 540.2 552.3 563.7
    3.1 Trade Credits 124.3 119.3 124.7 120.4 118.6
    3.2 Loans 202.3 207.1 208.9 215.0 222.0
    3.3 Currency and Deposits 141.1 144.1 146.2 149.3 154.8
    3.4 Other Assets 51.1 60.1 60.4 67.6 68.3
of which:          
Special drawing rights (Net incurrence of liabilities) 22.3 22.0 21.8 22.2 21.9
Memo Item: Assets to Liability ratio (%) 71.4 71.3 71.2 72.9 74.0
Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised; and R: Revised.
2. 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-22 (R) Mar-23 (PR) Mar-24 (PR)
Net IIP (A-B) -11.6 -11.3 -10.3
A. Assets 30.0 27.9 29.0
  1. Direct Investment 6.8 6.9 6.8
    1.1 Equity and investment fund shares 4.3 4.3 4.3
    1.2 Debt instruments 2.5 2.6 2.5
  2. Portfolio Investment 0.6 0.4 0.3
    2.1 Equity and investment fund shares 0.3 0.2 0.2
    2.2 Debt securities 0.3 0.2 0.1
  3. Other Investment 3.1 3.0 3.6
    3.1 Trade Credits 0.6 0.8 0.9
    3.2 Loans 0.3 0.3 0.4
    3.3 Currency and Deposits 1.5 1.0 1.5
    3.4 Other Assets 0.7 0.9 0.8
  4. Reserve Assets 19.5 17.6 18.3
B. Liabilities 41.6 39.2 39.3
  1. Direct Investment 16.8 16.0 15.3
    1.1 Equity and investment fund shares 15.9 15.1 14.4
    1.2 Debt instruments 0.9 0.9 0.9
  2. Portfolio Investment 8.6 7.4 8.0
    2.1 Equity and investment fund shares 5.0 4.2 4.8
    2.2 Debt securities 3.6 3.2 3.2
  3. Other Investment 16.2 15.8 16.0
    3.1 Trade Credits 3.8 3.8 3.4
    3.2 Loans 6.3 6.2 6.3
    3.3 Currency and Deposits 4.6 4.3 4.4
    3.4 Other Assets 1.5 1.5 1.9
of which:      
Special drawing rights (Net incurrence of liabilities) 0.7 0.7 0.6

Table 3: Composition of International Financial Assets and Liabilities of India
(per cent)
Period Mar-23 (PR) Jun-23 (PR) Sep-23 (PR) Dec-23 (PR) Mar-24 (P)
A. Assets
    1. Direct Investment 24.6 24.2 24.5 23.9 23.6
    2. Portfolio Investment 1.4 1.4 1.2 1.1 1.0
    3. Other Investment 11.0 11.3 12.2 12.1 12.5
    4. Reserve Assets 63.0 63.1 62.1 62.9 62.9
Total 100.0 100.0 100.0 100.0 100.0
B. Liabilities
    1. Direct Investment 40.7 40.3 39.8 39.5 39.0
    2. Portfolio Investment 18.9 19.6 19.5 19.8 20.4
    3. Other Investment 40.4 40.1 40.7 40.7 40.6
Total 100.0 100.0 100.0 100.0 100.0

Table 4: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period Mar-23 (PR) Jun-23 (PR) Sep-23 (PR) Dec-23 (PR) Mar-24 (P)
Non-Debt Liabilities 49.2 49.5 49.1 49.1 48.9
Debt Liabilities 50.8 50.5 50.9 50.9 51.1
Total 100.0 100.0 100.0 100.0 100.0

[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-December 2023 was released in the RBI website on March 28, 2024.


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