Today, the Reserve Bank released data relating to India’s International Investment Position for end-December 2022[1]. Key Features of India’s IIP in end-December 2022 -
Net claims of non-residents on India declined by US$ 12.0 billion during October-December 2022 and stood at US$ 374.5 billion as at end-December 2022. -
The reduction in net claims was due to higher rise in Indian residents’ overseas financial assets (US$ 28.7 billion) as compared with the increase in foreign liabilities of Indians (US$ 16.7 billion) (Table 1). -
The rise in Indian residents’ foreign assets during Q3:2022-23 was mainly on account of an increase of US$ 30.0 billion in reserve assets, which had earlier declined by US$ 56.5 billion in the previous quarter. -
Reserve assets accounted for 64.3 per cent of India’s international financial assets as at end-December 2022 (Table 2). -
Trade credits and loans were primary contributors to the rise in India’s foreign liabilities. -
Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms, as the rupee depreciated by 1.49 per cent during the quarter. -
The share of debt liabilities in total external liabilities increased to 50.2 per cent as at end-December 2022 from 49.8 per cent a quarter ago and 48.4 per cent a year ago (Table 3). -
India’s international assets covered 70.0 per cent of India’s international liabilities in December 2022 as compared with 72.5 per cent a year earlier. (Yogesh Dayal) Chief General Manager Press Release: 2022-2023/1948 Table 1: Overall International Investment Position of India | (US$ billion) | Period | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (P) | Net IIP (A-B) | -352.4 | -358.2 | -355.1 | -386.5 | -374.5 | A. Assets | 928.0 | 920.6 | 891.7 | 847.0 | 875.7 | 1. Direct Investment | 208.1 | 211.6 | 214.5 | 217.4 | 222.6 | 1.1 Equity and investment fund shares | 130.9 | 132.8 | 134.6 | 136.3 | 140.0 | 1.2 Debt instruments | 77.2 | 78.8 | 79.9 | 81.1 | 82.6 | 2. Portfolio Investment | 9.7 | 10.6 | 10.7 | 11.0 | 10.9 | 2.1 Equity and investment fund shares | 6.1 | 1.1 | 8.2 | 6.3 | 8.6 | 2.2 Debt Securities | 3.6 | 9.5 | 2.5 | 4.7 | 2.3 | 3. Other Investment | 76.6 | 91.1 | 77.3 | 85.9 | 79.5 | 3.1 Trade Credits | 12.9 | 18.6 | 21.1 | 24.7 | 26.1 | 3.2 Loans | 8.9 | 10.5 | 6.5 | 8.1 | 8.6 | 3.3 Currency and Deposits | 34.8 | 42.1 | 30.2 | 33.5 | 27.1 | 3.4 Other Assets | 20.0 | 19.9 | 19.5 | 19.6 | 17.7 | 4. Reserve Assets | 633.6 | 607.3 | 589.2 | 532.7 | 562.7 | B. Liabilities | 1,280.4 | 1,278.8 | 1,246.8 | 1,233.5 | 1,250.2 | 1. Direct Investment | 514.1 | 521.6 | 517.3 | 510.2 | 510.7 | 1.1 Equity and investment fund shares | 487.9 | 494.0 | 489.6 | 482.0 | 482.1 | 1.2 Debt instruments | 26.2 | 27.6 | 27.7 | 28.2 | 28.6 | 2. Portfolio Investment | 284.7 | 270.5 | 246.4 | 245.8 | 245.7 | 2.1 Equity and investment fund shares | 172.8 | 156.4 | 135.5 | 137.0 | 140.5 | 2.2 Debt Securities | 111.9 | 114.1 | 110.9 | 108.8 | 105.2 | 3. Other Investment | 481.6 | 486.7 | 483.1 | 477.5 | 493.8 | 3.1 Trade Credits | 113.4 | 118.2 | 123.2 | 123.5 | 126.3 | 3.2 Loans | 194.9 | 195.3 | 191.6 | 188.5 | 194.8 | 3.3 Currency and Deposits | 143.5 | 141.0 | 137.4 | 135.6 | 136.1 | 3.4 Other Assets | 29.8 | 32.2 | 30.9 | 29.9 | 36.6 | Memo item: Assets to Liability Ratio (%) | 72.5 | 72.0 | 71.5 | 68.7 | 70.0 | 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 | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (P) | A. Assets | 1. Direct Investment | 22.4 | 23.0 | 24.0 | 25.7 | 25.4 | 2. Portfolio Investment | 1.0 | 1.1 | 1.2 | 1.3 | 1.2 | 3. Other Investment | 8.3 | 9.9 | 8.7 | 10.1 | 9.1 | 4. Reserve Assets | 68.3 | 66.0 | 66.1 | 62.9 | 64.3 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 40.2 | 40.8 | 41.5 | 41.4 | 40.8 | 2. Portfolio Investment | 22.2 | 21.1 | 19.8 | 19.9 | 19.7 | 3. Other Investment | 37.6 | 38.1 | 38.7 | 38.7 | 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 | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (PR) | Dec-22 (P) | Non-Debt Liabilities | 51.6 | 50.9 | 50.1 | 50.2 | 49.8 | Debt Liabilities | 48.4 | 49.1 | 49.9 | 49.8 | 50.2 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | |