Today, the Reserve Bank released data relating to India’s International Investment Position at end-September 2020. Key Features of India’s IIP in September 2020 -
Net claims of non-residents on India declined by US$ 4.6 billion during the latest quarter and stood at US$ 339.1 billion at end-September 2020 (Table 1). -
The decline in net claims was due to an increase of US$ 53.4 billion in Indian residents’ overseas financial assets vis-à-vis a lower increase of US$ 48.8 billion in foreign-owned assets in India. -
Accretion to reserves assets (US$ 39.0 billion) was major contributor to the buildup in Indian residents’ overseas financial assets during July-September 2020. -
The rise in foreign-owned assets in India was supported by increase of US$ 36.6 billion in foreign direct investment and US$ 11.7 billion in portfolio investment during the quarter. -
Appreciation of the Indian rupee against the US dollar during the quarter contributed to the increase in India’s liabilities, when valued in US dollar terms. -
The ratio of India’s international financial assets to international financial liabilities stood at 70.3 per cent in September 2020 as compared with 60.5 per cent a year ago. -
Reserve assets accounted for nearly 68 per cent of India’s international assets (Table 2). -
The share of debt liabilities in total liabilities stood at 49.2 per cent in September 2020 (Table 3). (Yogesh Dayal)
Chief General Manager Press Release: 2020-2021/855
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Sep-19(R) | Dec-19(PR) | Mar-20(PR) | June-20(PR) | Sep-20(P) | | Net IIP (A-B) | -436.8 | -425.1 | -375.2 | -343.7 | -339.1 | | A. Assets | 669.4 | 697.8 | 717.0 | 749.6 | 803.0 | | 1. Direct Investment | 176.2 | 179.7 | 183.0 | 185.9 | 188.4 | | 2. Portfolio Investment | 4.5 | 4.8 | 3.8 | 4.3 | 5.0 | | 2.1 Equity Securities | 2.3 | 2.6 | 0.6 | 0.8 | 1.9 | | 2.2 Debt Securities | 2.2 | 2.2 | 3.2 | 3.5 | 3.1 | | 3. Other Investment | 55.0 | 53.4 | 52.4 | 53.7 | 64.9 | | 3.1 Trade Credits | 1.6 | 2.2 | 1.5 | 1.3 | 2.9 | | 3.2 Loans | 7.9 | 6.2 | 6.7 | 7.4 | 9.0 | | 3.3 Currency and Deposits | 27.6 | 27.1 | 26.0 | 27.7 | 34.9 | | 3.4 Other Assets | 17.9 | 17.9 | 18.2 | 17.3 | 18.1 | | 4. Reserve Assets | 433.7 | 459.9 | 477.8 | 505.7 | 544.7 | | B. Liabilities | 1106.2 | 1122.9 | 1092.2 | 1093.3 | 1142.1 | | 1. Direct Investment | 417.1 | 426.9 | 418.2 | 419.4 | 456.0 | | 2. Portfolio Investment | 260.2 | 266.7 | 246.7 | 241.6 | 253.3 | | 2.1 Equity Securities | 144.0 | 148.9 | 134.8 | 139.0 | 149.1 | | 2.2 Debt securities | 116.2 | 117.8 | 111.9 | 102.6 | 104.2 | | 3. Other Investment | 428.9 | 429.3 | 427.3 | 432.3 | 432.8 | | 3.1 Trade Credits | 106.6 | 105.2 | 104.3 | 104.0 | 102.2 | | 3.2 Loans | 174.8 | 177.3 | 179.6 | 184.4 | 180.3 | | 3.3 Currency and Deposits | 133.1 | 133.3 | 130.8 | 132.9 | 137.5 | | 3.4 Other Liabilities | 14.4 | 13.5 | 12.6 | 11.0 | 12.8 | | Memo item: Assets to Liability Ratio (%) | 60.5 | 62.1 | 65.6 | 68.6 | 70.3 | 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-19 (R) | Dec-19 (PR) | Mar-20 (PR) | June-20 (PR) | Sep-20 (P) | | A. Assets | | | | | | | 1. Direct Investment | 26.3 | 25.7 | 25.5 | 24.8 | 23.5 | | 2. Portfolio Investment | 0.7 | 0.7 | 0.5 | 0.6 | 0.6 | | 3. Other Investment | 8.2 | 7.7 | 7.3 | 7.2 | 8.1 | | 4. Reserve Assets | 64.8 | 65.9 | 66.7 | 67.4 | 67.8 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 37.7 | 38.0 | 38.3 | 38.4 | 39.9 | | 2. Portfolio Investment | 23.5 | 23.8 | 22.6 | 22.1 | 22.2 | | 3. Other Investment | 38.8 | 38.2 | 39.1 | 39.5 | 37.9 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Sep-19 (R) | Dec-19 (PR) | Mar-20 (PR) | June-20 (PR) | Sep-20 (P) | | Non-Debt Liabilities | 49.1 | 49.3 | 48.5 | 48.9 | 50.8 | | Debt Liabilities | 50.9 | 50.7 | 51.5 | 51.1 | 49.2 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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