Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2020. Key Features of India’s IIP in June 2020 -
Net claims of non-residents on India declined for the fourth consecutive quarter and stood at US$ 345.7 billion at end-June 2020 (Table 1). -
The decline of US$ 29.7 billion in net claims during Q1:2020-21 was mainly due to an increase of US$ 27.9 billion in reserve assets. -
Among the constituents of foreign-owned assets, loans, foreign direct investment (FDI) and currency and deposits increased, whereas portfolio investment declined during the quarter. -
Reserve assets continued to have the dominant share in India’s international assets (Table 2). -
The share of non-debt liabilities increased marginally during the quarter to 48.9 per cent as at end-June 2020 (Table 3). (Yogesh Dayal) Chief General Manager Press Release: 2020-2021/415 Table 1: Overall International Investment Position of India | (US $ billion) | Period | June-19(R) | Sep-19(PR) | Dec-19(PR) | Mar-20 (PR) | June-20 (P) | Net IIP (A-B) | -451.6 | -436.7 | -425.1 | -375.4 | -345.7 | A. Assets | 662.2 | 669.5 | 697.9 | 717.0 | 747.9 | 1. Direct Investment | 173.2 | 176.2 | 179.7 | 183.0 | 185.4 | 2. Portfolio Investment | 5.0 | 4.5 | 4.8 | 3.8 | 4.3 | 2.1 Equity Securities | 1.8 | 2.3 | 2.6 | 0.6 | 0.8 | 2.2 Debt Securities | 3.2 | 2.2 | 2.2 | 3.2 | 3.5 | 3. Other Investment | 54.1 | 55.0 | 53.4 | 52.4 | 52.5 | 3.1 Trade Credits | 2.1 | 1.6 | 2.2 | 1.5 | 1.2 | 3.2 Loans | 9.8 | 7.9 | 6.2 | 6.7 | 7.4 | 3.3 Currency and Deposits | 24.2 | 27.6 | 27.1 | 26.0 | 27.8 | 3.4 Other Assets | 18.1 | 17.9 | 17.9 | 18.2 | 16.1 | 4. Reserve Assets | 429.8 | 433.7 | 459.9 | 477.8 | 505.7 | B. Liabilities | 1113.8 | 1106.2 | 1123.0 | 1092.4 | 1093.6 | 1. Direct Investment | 417.6 | 417.1 | 426.9 | 418.2 | 419.3 | 2. Portfolio Investment | 266.8 | 260.2 | 266.7 | 246.7 | 241.6 | 2.1 Equity Securities | 151.2 | 144.0 | 148.9 | 134.8 | 139.0 | 2.2 Debt securities | 115.6 | 116.2 | 117.8 | 111.9 | 102.6 | 3. Other Investment | 429.3 | 428.9 | 429.3 | 427.5 | 432.7 | 3.1 Trade Credits | 107.2 | 106.6 | 105.2 | 104.3 | 104.0 | 3.2 Loans | 173.7 | 174.8 | 177.3 | 179.8 | 184.4 | 3.3 Currency and Deposits | 133.8 | 133.1 | 133.3 | 130.8 | 132.9 | 3.4 Other Liabilities | 14.5 | 14.4 | 13.5 | 12.6 | 11.4 | Memo item: Assets to Liability Ratio (%) | 59.5 | 60.5 | 62.1 | 65.6 | 68.4 | 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 | June-19(R) | Sep-19(PR) | Dec-19(PR) | Mar-20 (PR) | June-20 (P) | A. Assets | | | | | | 1. Direct Investment | 26.2 | 26.3 | 25.7 | 25.5 | 24.8 | 2. Portfolio Investment | 0.8 | 0.7 | 0.7 | 0.5 | 0.6 | 3. Other Investment | 8.1 | 8.2 | 7.7 | 7.4 | 7.0 | 4. Reserve Assets | 64.9 | 64.8 | 65.9 | 66.6 | 67.6 | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 37.5 | 37.7 | 38.0 | 38.3 | 38.3 | 2. Portfolio Investment | 24.0 | 23.5 | 23.7 | 22.6 | 22.1 | 3. Other Investment | 38.5 | 38.8 | 38.3 | 39.1 | 39.6 | Table 3: Share of External Debt and Non-Debt Liabilities of India | (per cent) | Period | June-19(R) | Sep-19(PR) | Dec-19(PR) | Mar-20 (PR) | June-20 (P) | Non-Debt Liabilities | 49.5 | 49.1 | 49.3 | 48.5 | 48.9 | Debt Liabilities | 50.5 | 50.9 | 50.7 | 51.5 | 51.1 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | |