Today, the Reserve Bank released data relating to India’s International Investment Position for end-December 2023^[1].

Key Features of India’s IIP in end-December 2023:

• Net claims of non-residents on India declined by US$ 12.2 billion during October-December 2023 to US$ 370.4 billion as at end-December 2023.

• The decline in net claims was due to the higher rise in Indian residents’ overseas financial assets (US$ 40.7 billion) as compared to the increase in foreign-owned assets in India (US$ 28.5 billion) (Table 1).

• Reserve assets recorded a significant rise (US$ 34.8 billion) and accounted for over 85 per cent of increase in foreign assets of Indian residents during Q3:2023-24.

• The rise in India’s foreign liabilities was attributed to higher inward direct investments, portfolio investments and loans taken by resident entities; even as trade credits recorded a marginal decline.

• Reserve assets accounted for 63.9 per cent of India’s international financial assets (Table 2).

• The share of debt liabilities in total external liabilities remained at its level a quarter ago (50.4 per cent) (Table 3).

• The ratio of India’s international financial assets to international financial liabilities improved to 72.4 per cent in December 2023 from 70.9 per cent a quarter ago.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/2143

^[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-September 2023 was released in the RBI website on December 29, 2023.