Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2023[1]. Key Features of India’s IIP in end-June 2023: -
Net claims of non-residents on India increased by US$ 12.1 billion during Q1:2023-24 and stood at US$ 379.7 billion as at end-June 2023. -
The rise in net claims of non-residents during the quarter was on account of higher rise in foreign-owned financial assets in India (US$ 36.2 billion) when compared with Indian residents’ overseas financial assets (US$ 24.1 billion) (Table 1). -
Increase in reserve assets (US$ 16.6 billion) was the largest contributor to the rise in Indian residents’ foreign assets during April-June 2023, followed by direct investment, loans and trade credit. -
Inward portfolio investment (US$ 15.0 billion) and foreign direct investment (US$ 8.9 billion) together accounted for two thirds of the rise in foreign liabilities of Indian residents. -
Reserve assets accounted for 64.2 per cent of India’s international financial assets at end-June 2023 (Tables 1 and 2). -
Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms. -
The ratio of India’s international assets to international liabilities moderated to 70.9 per cent in June 2023 from 71.1 per cent a quarter ago and 71.5 per cent a year ago. -
Debt and non-debt liabilities accounted for nearly equal share in total external liabilities during the quarter (Table 3). (Yogesh Dayal)
Chief General Manager Press Release: 2023-2024/1011
| Table 1: Overall International Investment Position of India | | (US$ billion) | | Period | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (P) | | Net IIP (A-B) | -355.2 | -386.6 | -373.3 | -367.6 | -379.7 | | A. Assets | 891.6 | 846.9 | 875.7 | 902.7 | 926.8 | | 1. Direct Investment | 214.5 | 217.3 | 222.7 | 225.5 | 227.8 | | 1.1 Equity and investment fund shares | 134.6 | 136.2 | 140.1 | 142.0 | 143.5 | | 1.2 Debt instruments | 79.9 | 81.1 | 82.6 | 83.5 | 84.3 | | 2. Portfolio Investment | 10.6 | 11.0 | 10.9 | 11.0 | 11.3 | | 2.1 Equity and investment fund shares | 8.1 | 6.3 | 8.6 | 5.0 | 8.7 | | 2.2 Debt securities | 2.5 | 4.7 | 2.3 | 6.0 | 2.6 | | 3. Other Investment | 77.3 | 85.9 | 79.4 | 87.7 | 92.6 | | 3.1 Trade Credits | 21.1 | 24.6 | 26.0 | 27.5 | 29.7 | | 3.2 Loans | 6.5 | 8.1 | 8.6 | 10.7 | 14.5 | | 3.3 Currency and Deposits | 30.2 | 33.5 | 27.1 | 30.5 | 30.6 | | 3.4 Other Assets | 19.5 | 19.7 | 17.7 | 19.0 | 17.8 | | 4. Reserve Assets | 589.2 | 532.7 | 562.7 | 578.5 | 595.1 | | B. Liabilities | 1,246.8 | 1,233.5 | 1,249.0 | 1,270.3 | 1,306.5 | | 1. Direct Investment | 517.3 | 510.2 | 510.8 | 523.4 | 532.3 | | 1.1 Equity and investment fund shares | 489.6 | 482.0 | 482.1 | 493.9 | 501.4 | | 1.2 Debt instruments | 27.7 | 28.2 | 28.7 | 29.5 | 30.9 | | 2. Portfolio Investment | 245.0 | 244.4 | 244.2 | 243.6 | 258.6 | | 2.1 Equity and investment fund shares | 135.5 | 137.0 | 140.5 | 139.0 | 152.9 | | 2.2 Debt securities | 109.5 | 107.4 | 103.7 | 104.6 | 105.7 | | 3. Other Investment | 484.5 | 478.9 | 494.0 | 503.3 | 515.6 | | 3.1 Trade Credits | 122.8 | 123.2 | 124.6 | 124.3 | 119.3 | | 3.2 Loans | 193.4 | 190.3 | 196.7 | 202.6 | 207.1 | | 3.3 Currency and Deposits | 137.4 | 135.6 | 136.1 | 141.1 | 144.1 | | 3.4 Other Assets | 30.9 | 29.8 | 36.6 | 35.3 | 45.1 | | Memo Item: Assets to Liability ratio (%) | 71.5 | 68.7 | 70.1 | 71.1 | 70.9 | Note:
1. PR: Partially revised, P: Provisional
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 | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (P) | | A. Assets | | 1. Direct Investment | 24.0 | 25.7 | 25.4 | 25.0 | 24.6 | | 2. Portfolio Investment | 1.2 | 1.3 | 1.2 | 1.2 | 1.2 | | 3. Other Investment | 8.7 | 10.1 | 9.1 | 9.7 | 10.0 | | 4. Reserve Assets | 66.1 | 62.9 | 64.3 | 64.1 | 64.2 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 41.5 | 41.4 | 40.9 | 41.2 | 40.7 | | 2. Portfolio Investment | 19.6 | 19.8 | 19.5 | 19.2 | 19.8 | | 3. Other Investment | 38.9 | 38.8 | 39.6 | 39.6 | 39.5 | | 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 | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (PR) | Mar-23 (PR) | Jun-23 (P) | | Non-Debt Liabilities | 50.1 | 50.2 | 49.8 | 49.8 | 50.1 | | Debt Liabilities | 49.9 | 49.8 | 50.2 | 50.2 | 49.9 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| |