Today, the Reserve Bank released data relating to India’s international investment position (IIP) as at end-June 2017. Key Features of India’s IIP in June 2017 -
Claims of non-residents on Indian residents at end-June 2017 were 70 per cent higher than the level of Indian residents’ foreign assets (including gold bullion held as reserve assets) (Table 1). -
As a consequence, net IIP (the difference between the economy’s external financial assets and liabilities) deteriorated during April-June 2017. -
Increase in reserve assets and overseas direct investment contributed to the increase in Indian residents’ financial assets abroad, offsetting a reduction in loans and currency and deposits during the quarter; reserve assets accounted for nearly two-third of India’s international financial assets (Table 2). -
Portfolio investment in debt securities and direct investment inflows were major contributors to the increase in foreign-owned assets in India during the quarter. -
Debt and non-debt liabilities had equal shares in total external liabilities of Indian residents (Table 3). -
The ratio of India’s international financial assets to international financial liabilities stood at 58.7 per cent in June 2017 (61.3 per cent a year ago). Jose J. Kattoor
Chief General Manager Press Release: 2017-2018/885
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Mar-16 (PR) | Jun-16 (PR) | Sep-16 (PR) | Dec-16 (P) | Mar-17 (PR) | June-17 (P) | | Net IIP | -359.2 | -350.8 | -366.8 | -361.8 | -394.5 | -406.4 | | A. Assets | 552.1 | 554.5 | 567.3 | 543.4 | 564.2 | 576.9 | | 1. Direct Investment | 141.6 | 143.6 | 140.6 | 144.1 | 148.2 | 151.2 | | 2.Portfolio Investment | 2.5 | 1.6 | 2.3 | 2.3 | 2.6 | 2.1 | | 2.1 Equity Securities | 1.6 | 1.6 | 2.0 | 2.3 | 1.6 | 2.0 | | 2.2 Debt Securities | 0.9 | 0.0 | 0.3 | 0.0 | 1.0 | 0.1 | | 3. Other Investment | 47.8 | 45.8 | 52.4 | 38.1 | 43.4 | 37.1 | | 3.1 Trade Credits | 2.9 | 2.4 | 2.2 | 1.9 | 1.8 | 1.6 | | 3.2 Loans | 6.7 | 4.7 | 6.3 | 4.2 | 7.3 | 5.2 | | 3.3 Currency & Deposits | 21.1 | 21.6 | 26.8 | 14.9 | 20.1 | 16.1 | | 3.4 Other Assets | 17.1 | 17.1 | 17.1 | 17.1 | 14.2 | 14.2 | | 4. Reserve Assets | 360.2 | 363.5 | 372.0 | 358.9 | 370.0 | 386.5 | | B. Liabilities | 911.3 | 905.3 | 934.1 | 905.2 | 958.7 | 983.3 | | 1. Direct Investment | 293.9 | 294.1 | 311.7 | 318.5 | 342.7 | 353.4 | | 2. Portfolio Investment | 224.8 | 220.5 | 232.1 | 221.1 | 238.6 | 251.1 | | 2.1 Equity Securities | 141.9 | 141.5 | 148.1 | 140.6 | 154.0 | 154.9 | | 2.2 Debt securities | 82.9 | 79.0 | 84.0 | 80.5 | 84.6 | 96.2 | | 3. Other Investment | 392.6 | 390.7 | 390.3 | 365.6 | 377.4 | 378.8 | | 3.1 Trade Credits | 82.3 | 82.1 | 82.0 | 84.8 | 88.9 | 89.6 | | 3.2 Loans | 170.4 | 170.3 | 167.0 | 160.3 | 159.9 | 158.7 | | 3.3 Currency & Deposits | 127.1 | 126.5 | 130.2 | 110.0 | 117.1 | 118.5 | | 3.4 Other Liabilities | 12.8 | 11.8 | 11.1 | 10.5 | 11.5 | 12.0 | | Memo item: Assets to Liability Ratio (%) | 60.6 | 61.3 | 60.7 | 60.0 | 58.9 | 58.7 | 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 | Mar-16 (PR) | Jun-16 (PR) | Sep-16 (PR) | Dec-16 (P) | Mar-17 (PR) | June-17 (P) | | A. Assets | | | | | | | | 1. Direct Investment | 25.6 | 25.9 | 24.8 | 26.5 | 26.3 | 26.2 | | 2. Portfolio Investment | 0.5 | 0.3 | 0.4 | 0.4 | 0.5 | 0.4 | | 3. Other Investment | 8.7 | 8.2 | 9.2 | 7.0 | 7.7 | 6.4 | | 4. Reserve Assets | 65.2 | 65.6 | 65.6 | 66.1 | 65.5 | 67.0 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 32.2 | 32.5 | 33.4 | 35.2 | 35.8 | 36.0 | | 2. Portfolio Investment | 24.7 | 24.4 | 24.9 | 24.4 | 24.9 | 25.5 | | 3. Other Investment | 43.1 | 43.1 | 41.8 | 40.4 | 39.4 | 38.5 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Mar-16 (PR) | Jun-16 (PR) | Sep-16 (PR) | Dec-16 (P) | Mar-17 (PR) | June-17 (P) | | Non-Debt Liabilities | 46.3 | 46.6 | 47.7 | 49.2 | 50.3 | 50.1 | | Debt Liabilities | 53.7 | 53.4 | 52.3 | 50.8 | 49.7 | 49.9 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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