Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2024[1]. Key Features of IIP in end-September 2024: -
Net claims of non-residents on India declined by US$ 19.8 billion during Q2:2024-25 to US$ 348.5 billion in September 2024. -
Higher rise in Indian residents’ overseas financial assets (US$ 66.5 billion) as compared to that in the foreign-owned assets in India (US$ 46.7 billion) led to the decline in net claims of non-residents during the quarter (Table 1). -
Over 80 per cent of the increase in overseas financial assets during July-September 2024 was due to the surge of US$ 53.8 billion in the reserve assets. -
Reserve assets had 63 per cent share in India’s total international financial assets in September 2024 (Table 2). -
Rise in inward portfolio investment (US$ 16.5 billion) and loans (US$ 15.4 billion) together accounted for over two-thirds of the rise in foreign liabilities of Indian residents during the quarter. -
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 assets to international liabilities improved to 76.2 per cent in September 2024 from 74.1 per cent a quarter ago and 71.4 per cent a year ago. -
The share of debt liabilities in total external liabilities increased to 52.7 per cent in September 2024 from 51.1 per cent a year ago (Table 3). (Puneet Pancholy)
Chief General Manager Press Release: 2024-2025/1810
| Table 1: Overall International Investment Position of India | | (US$ billion) | | Period | Sep-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (PR) | Sep-24 (P) | | Net IIP (A-B) | -382.0 | -368.1 | -361.5 | -368.3 | -348.5 | | A. Assets | 952.2 | 999.0 | 1,033.5 | 1,051.3 | 1,117.8 | | 1. Direct Investment | 232.1 | 236.5 | 242.3 | 246.2 | 253.5 | | 1.1 Equity and investment fund shares | 146.2 | 149.4 | 153.4 | 156.2 | 161.5 | | 1.2 Debt instruments | 85.9 | 87.1 | 88.9 | 90.0 | 92.0 | | 2. Portfolio Investment | 12.1 | 11.7 | 12.1 | 12.1 | 12.3 | | 2.1 Equity and investment fund shares | 9.0 | 9.5 | 10.6 | 10.4 | 11.0 | | 2.2 Debt securities | 3.1 | 2.2 | 1.5 | 1.7 | 1.3 | | 3. Other Investment | 120.3 | 128.3 | 132.7 | 141.0 | 146.2 | | 3.1 Trade Credits | 30.8 | 31.7 | 33.5 | 32.9 | 32.4 | | 3.2 Loans | 12.0 | 18.5 | 17.6 | 20.8 | 22.2 | | 3.3 Currency and Deposits | 45.7 | 44.3 | 53.5 | 57.8 | 56.1 | | 3.4 Other Assets | 31.8 | 33.8 | 28.1 | 29.5 | 35.5 | | 4. Reserve Assets | 587.7 | 622.5 | 646.4 | 652.0 | 705.8 | | B. Liabilities | 1,334.2 | 1,367.1 | 1,395.0 | 1,419.6 | 1,466.3 | | 1. Direct Investment | 528.7 | 536.9 | 542.9 | 552.9 | 555.5 | | 1.1 Equity and investment fund shares | 497.6 | 505.6 | 511.1 | 520.7 | 523.0 | | 1.2 Debt instruments | 31.1 | 31.3 | 31.8 | 32.2 | 32.5 | | 2. Portfolio Investment | 259.3 | 269.0 | 277.0 | 277.1 | 293.6 | | 2.1 Equity and investment fund shares | 154.6 | 161.2 | 162.0 | 160.9 | 170.9 | | 2.2 Debt securities | 104.7 | 107.8 | 115.0 | 116.2 | 122.7 | | 3. Other Investment | 546.2 | 561.2 | 575.1 | 589.6 | 617.2 | | 3.1 Trade Credits | 124.7 | 123.2 | 123.7 | 126.6 | 129.9 | | 3.2 Loans | 208.7 | 214.8 | 221.7 | 224.8 | 240.2 | | 3.3 Currency and Deposits | 146.2 | 149.3 | 154.8 | 160.6 | 164.1 | | 3.4 Other Liabilities | 66.6 | 73.9 | 74.9 | 77.6 | 83.0 | | of which: | | | | | | | Special drawing rights (Net incurrence of liabilities) | 21.8 | 22.2 | 21.9 | 21.8 | 22.4 | | Memo Item: Assets to Liability ratio (%) | 71.4 | 73.1 | 74.1 | 74.1 | 76.2 | 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: Composition of International Financial Assets and Liabilities of India | | (per cent) | | Period | Sep-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (PR) | Sep-24 (P) | | A. Assets | | 1. Direct Investment | 24.4 | 23.7 | 23.4 | 23.4 | 22.7 | | 2. Portfolio Investment | 1.3 | 1.2 | 1.2 | 1.2 | 1.1 | | 3. Other Investment | 12.6 | 12.8 | 12.8 | 13.4 | 13.1 | | 4. Reserve Assets | 61.7 | 62.3 | 62.6 | 62.0 | 63.1 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 39.6 | 39.3 | 38.9 | 39.0 | 37.9 | | 2. Portfolio Investment | 19.5 | 19.7 | 19.9 | 19.5 | 20.0 | | 3. Other Investment | 40.9 | 41.0 | 41.2 | 41.5 | 42.1 | | 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-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (PR) | Sep-24 (P) | | Non-Debt Liabilities | 48.9 | 48.8 | 48.3 | 48.0 | 47.3 | | Debt Liabilities | 51.1 | 51.2 | 51.7 | 52.0 | 52.7 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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