Today, the Reserve Bank released data relating to India’s International Investment Position at end-September 2019. Key Features of India’s IIP in September 2019 -
Net claims of non-residents on India declined by US$ 14.8 billion during July-September 2019 (Table 1). -
The decline in net claims was due to an increase of US$ 7.4 billion in Indian residents’ overseas financial assets and a reduction in foreign-owned assets in India by US $ 7.4 billion during the quarter. -
The decline in foreign-owned assets in India was mainly due to reduction in portfolio equity investment. -
Depreciation of the Indian rupee against the US dollar during the quarter contributed to the reduction in India’s liabilities, when valued in US dollar terms. -
Increase in reserve assets, currency and deposits as well as overseas direct investments resulted in higher foreign assets of Indian residents. -
Reserve assets accounted for nearly 65 per cent of total foreign assets (Table 2). -
The share of debt liabilities in total liabilities increased marginally to 51.0 per cent in September 2019 from 50.6 per cent a quarter ago (Table 3). (Yogesh Dayal)
Chief General Manager Press Release: 2019-2020/1564
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Sep-18(R) | Dec-18(PR) | Mar-19(PR) | Jun-19(PR) | Sep-19(P) | | Net IIP (A-B) | -387.3 | -426.9 | -436.7 | -451.5 | -436.7 | | A. Assets | 608.2 | 606.4 | 642.1 | 662.4 | 669.8 | | 1. Direct Investment | 163.5 | 166.6 | 170.0 | 173.0 | 175.7 | | 2. Portfolio Investment | 2.6 | 2.7 | 4.7 | 5.0 | 4.5 | | 2.1 Equity Securities | 1.8 | 1.4 | 0.6 | 1.8 | 2.3 | | 2.2 Debt Securities | 0.8 | 1.3 | 4.1 | 3.2 | 2.2 | | 3. Other Investment | 41.5 | 41.6 | 54.5 | 54.5 | 55.9 | | 3.1 Trade Credits | 0.9 | 0.3 | 0.9 | 2.1 | 1.7 | | 3.2 Loans | 7.1 | 6.6 | 9.9 | 9.8 | 7.9 | | 3.3 Currency and Deposits | 16.6 | 17.2 | 25.2 | 24.2 | 27.6 | | 3.4 Other Assets | 16.9 | 17.5 | 18.6 | 18.4 | 18.7 | | 4. Reserve Assets | 400.5 | 395.6 | 412.9 | 429.8 | 433.7 | | B. Liabilities | 995.5 | 1033.3 | 1078.8 | 1113.9 | 1106.5 | | 1. Direct Investment | 362.0 | 386.2 | 399.2 | 417.3 | 416.4 | | 2. Portfolio Investment | 237.9 | 245.8 | 260.3 | 267.1 | 260.0 | | 2.1 Equity Securities | 135.2 | 138.1 | 147.5 | 151.2 | 144.0 | | 2.2 Debt securities | 102.7 | 107.7 | 112.8 | 115.9 | 116.0 | | 3. Other Investment | 395.6 | 401.2 | 419.3 | 429.6 | 430.1 | | 3.1 Trade Credits | 104.3 | 103.7 | 105.2 | 107.2 | 106.6 | | 3.2 Loans | 157.6 | 160.4 | 168.1 | 174.0 | 175.0 | | 3.3 Currency and Deposits | 122.1 | 126.0 | 130.6 | 133.8 | 133.1 | | 3.4 Other Liabilities | 11.5 | 11.2 | 15.3 | 14.5 | 15.4 | | Memo item: Assets to Liability Ratio (%) | 61.1 | 58.7 | 59.5 | 59.5 | 60.5 | R: Revised PR: Partially revised P: Provisional;
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-18(R) | Dec-18(PR) | Mar-19(PR) | Jun-19(PR) | Sep-19(P) | | A. Assets | | | | | | | 1. Direct Investment | 26.9 | 27.5 | 26.5 | 26.1 | 26.2 | | 2. Portfolio Investment | 0.4 | 0.4 | 0.7 | 0.8 | 0.7 | | 3. Other Investment | 6.8 | 6.9 | 8.5 | 8.2 | 8.3 | | 4. Reserve Assets | 65.9 | 65.2 | 64.3 | 64.9 | 64.8 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 36.4 | 37.4 | 37.0 | 37.5 | 37.6 | | 2. Portfolio Investment | 23.9 | 23.8 | 24.1 | 24.0 | 23.5 | | 3. Other Investment | 39.7 | 38.8 | 38.9 | 38.5 | 38.9 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Sep-18(R) | Dec-18(PR) | Mar-19(PR) | Jun-19(PR) | Sep-19(P) | | Non-Debt Liabilities | 48.4 | 49.1 | 49.1 | 49.4 | 49.0 | | Debt Liabilities | 51.6 | 50.9 | 50.9 | 50.6 | 51.0 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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