Today, the Reserve Bank released data relating to India’s international investment position (IIP) as at end-December 2017. Key Features of India’s IIP in December 2017 -
Net claims of non-residents on India increased by US$ 26.3 billion over the previous quarter (Table 1). -
Foreign-owned assets in India surged by US$ 38.6 billion during the quarter, with broad-based contribution from foreign direct investment (FDI), portfolio investment, currency and deposits as well as trade credit; outstanding commercial loans, however, declined marginally during the quarter. -
Indian residents’ overseas assets increased by US$ 12.3 billion over the level in the previous quarter, a substantial portion of which came from increase in the reserve assets. -
Appreciation of Indian rupee against the US dollar (by 2.2 per cent) during the quarter partly explained the increase in India’s liabilities when valued in US dollar terms. -
While reserve assets accounted for over two-thirds of India’s international assets, debt and non-debt liabilities had an almost equal share in total liabilities (Table 2 and 3). -
The ratio of India’s international financial assets to international financial liabilities stood at 58.6 per cent at end-December 2017 (59.6 per cent a quarter ago). | Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Dec-16 (PR) | Mar-17 (PR) | Jun–17 (PR) | Sep-17 (PR) | Dec–17 (P) | | Net IIP | -361.6 | -394.1 | -406.2 | -403.4 | -429.7 | | A. Assets | 543.4 | 564.2 | 576.7 | 595.3 | 607.6 | | 1. Direct Investment | 144.1 | 148.2 | 151.3 | 153.6 | 155.3 | | 2. Portfolio Investment | 2.3 | 2.6 | 2.1 | 2.5 | 2.6 | | 2.1 Equity Securities | 2.3 | 1.6 | 2.0 | 2.4 | 2.3 | | 2.2 Debt Securities | 0.0 | 1.0 | 0.1 | 0.1 | 0.3 | | 3. Other Investment | 38.1 | 43.4 | 36.8 | 39.0 | 40.6 | | 3.1 Trade Credits | 1.9 | 1.8 | 1.2 | 1.3 | 1.6 | | 3.2 Loans | 4.2 | 7.3 | 5.1 | 5.9 | 5.5 | | 3.3 Currency and Deposits | 14.9 | 20.1 | 16.1 | 17.2 | 18.8 | | 3.4 Other Assets | 17.1 | 14.3 | 14.4 | 14.7 | 14.7 | | 4. Reserve Assets | 358.9 | 370.0 | 386.5 | 400.2 | 409.1 | | B. Liabilities | 905.0 | 958.3 | 982.9 | 998.7 | 1037.3 | | 1. Direct Investment | 318.5 | 342.6 | 353.2 | 364.1 | 377.7 | | 2. Portfolio Investment | 221.1 | 238.6 | 251.1 | 254.0 | 267.7 | | 2.1 Equity Securities | 140.6 | 154.0 | 154.9 | 150.1 | 155.6 | | 2.2 Debt securities | 80.5 | 84.6 | 96.2 | 103.9 | 112.1 | | 3. Other Investment | 365.4 | 377.1 | 378.5 | 380.6 | 391.9 | | 3.1 Trade Credits | 84.8 | 88.9 | 89.6 | 93.6 | 98.5 | | 3.2 Loans | 160.1 | 159.6 | 158.4 | 156.9 | 156.1 | | 3.3 Currency and Deposits | 110.0 | 117.1 | 118.5 | 118.3 | 123.5 | | 3.4 Other Liabilities | 10.5 | 11.6 | 12.0 | 11.9 | 13.8 | | Memo item: Assets to Liability Ratio (%) | 60.1 | 58.9 | 58.7 | 59.6 | 58.6 | R: Revised PR: Partially revised P: Provisional;
Note: 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-16(PR) | Mar-17(PR) | June-17(PR) | Sep-17(PR) | Dec-17(P) | | A. Assets | | | | | | | 1. Direct Investment | 26.5 | 26.3 | 26.2 | 25.8 | 25.6 | | 2. Portfolio Investment | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | | 3. Other Investment | 7.0 | 7.7 | 6.4 | 6.6 | 6.7 | | 4. Reserve Assets | 66.1 | 65.6 | 67.0 | 67.2 | 67.3 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 35.2 | 35.7 | 35.9 | 36.5 | 36.4 | | 2. Portfolio Investment | 24.4 | 24.9 | 25.6 | 25.4 | 25.8 | | 3. Other Investment | 40.4 | 39.4 | 38.5 | 38.1 | 37.8 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Dec-16(PR) | Mar-17(PR) | June-17(PR) | Sep-17(PR) | Dec-17(P) | | Non-Debt Liabilities | 49.2 | 50.3 | 50.1 | 49.9 | 49.9 | | Debt Liabilities | 50.8 | 49.7 | 49.9 | 50.1 | 50.1 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | Jose J. Kattoor
Chief General Manager Press Release: 2017-2018/2585
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