Today, the Reserve Bank released data relating to India’s International Investment Position as at end-March 2019. Key Features of India’s IIP in March 2019 I. Quarterly Variations: -
Net claims of non-residents on India increased to US$ 436.4 billion reflecting an increase of US$ 45.2 billion in foreign-owned assets in India vis-à-vis an increase of US$ 35.7 billion in Indian residents’ financial assets abroad (Table 1). -
The increase in foreign-owned assets in India was primarily due to portfolio investment, direct investment and other investment, particularly loans. -
With the dollar-rupee swap conducted by the Reserve Bank in March, reserve assets increased sizably during the quarter (Table 3). -
Debt and non-debt liabilities owed to non-residents had almost equal shares in total liabilities (Table 4). -
The ratio of India’s international financial assets to international financial liabilities stood at 59.5 per cent at end-March 2019 (58.7 per cent in December 2018). II. Annual Variations -
International financial assets of Indian residents increased by US$ 8.4 billion during 2018-19 (Table 1); while reserve assets declined by US$ 11.6 billion, direct investment and other investment overseas (trade credit, loans and currency and deposits) moved up by US$ 12.6 billion and US$ 6.3 billion, respectively. -
International financial liabilities increased by US$ 26.2 billion with direct investment and other investment increasing by US$ 20.2 billion and US$ 18.1 billion, respectively, while portfolio investment declined by US$ 12.2 billion. -
Overall, net claims of non-residents on India increased by US$ 17.9 billion. III. Ratio of International Financial Assets and Liabilities to GDP -
The ratio of total overseas financial assets of Indian residents declined to 23.4 per cent of GDP in March 2019, from 24.1 per cent a year ago (Table 2). -
The ratio of total claims of non-residents to GDP declined to 39.2 per cent in March 2019 from 40.0 per cent a year ago. -
The ratio of net IIP of India to GDP remained unchanged from a year ago at (-)15.9 per cent in March 2019. Yogesh Dayal
Chief General Manager Press Release : 2018-2019/3078
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Mar-18(PR) | Jun-18(PR) | Sep-18(PR) | Dec-18(PR) | Mar-19(P) | | Net IIP | -418.5 | -407.5 | -387.3 | -426.9 | -436.4 | | A. Assets | 633.7 | 611.1 | 608.2 | 606.4 | 642.1 | | 1. Direct Investment | 157.4 | 160.9 | 163.5 | 166.6 | 170.0 | | 2. Portfolio Investment | 3.6 | 3.1 | 2.6 | 2.7 | 4.7 | | 2.1 Equity Securities | 2.1 | 1.9 | 1.8 | 1.4 | 0.6 | | 2.2 Debt Securities | 1.5 | 1.1 | 0.8 | 1.3 | 4.1 | | 3. Other Investment | 48.2 | 41.3 | 41.5 | 41.6 | 54.5 | | 3.1 Trade Credits | 1.7 | 1.4 | 0.9 | 0.3 | 0.9 | | 3.2 Loans | 8.2 | 7.0 | 7.1 | 6.6 | 9.9 | | 3.3 Currency and Deposits | 20.8 | 16.3 | 16.6 | 17.2 | 25.2 | | 3.4 Other Assets | 17.5 | 16.7 | 16.9 | 17.5 | 18.5 | | 4. Reserve Assets | 424.5 | 405.7 | 400.5 | 395.6 | 412.9 | | B. Liabilities | 1052.3 | 1018.5 | 995.5 | 1033.3 | 1078.5 | | 1. Direct Investment | 379.0 | 372.3 | 362.1 | 386.2 | 399.2 | | 2. Portfolio Investment | 272.2 | 254.3 | 237.9 | 245.8 | 260.0 | | 2.1 Equity Securities | 155.1 | 144.4 | 135.2 | 138.1 | 147.5 | | 2.2 Debt securities | 117.0 | 109.8 | 102.7 | 107.8 | 112.5 | | 3. Other Investment | 401.2 | 391.9 | 395.5 | 401.3 | 419.3 | | 3.1 Trade Credits | 103.2 | 99.6 | 104.3 | 103.6 | 105.2 | | 3.2 Loans | 159.8 | 156.5 | 157.6 | 160.5 | 168.1 | | 3.3 Currency and Deposits | 126.5 | 124.5 | 122.1 | 126.0 | 130.6 | | 3.4 Other Liabilities | 11.7 | 11.3 | 11.5 | 11.2 | 15.2 | | Memo item: Assets to Liability Ratio (%) | 60.2 | 60.0 | 61.1 | 58.7 | 59.5 | 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: Ratios of External Financial Assets and Liabilities to GDP | | (per cent) | | Period | Mar-17 (R) | Mar-18 (PR) | Mar-19(P) | | Net IIP (Assets - Liabilities) | -16.4 | -15.9 | -15.9 | | A. Assets | 24.1 | 24.1 | 23.4 | | 1. Direct Investment Abroad | 6.3 | 6.0 | 6.2 | | 2. Portfolio Investment | 0.1 | 0.1 | 0.2 | | 2.1 Equity Securities | 0.1 | 0.1 | - | | 2.2 Debt Securities | - | 0.1 | 0.1 | | 3. Other Investment | 2.1 | 1.8 | 2.0 | | 3.1 Trade Credits | 0.1 | 0.1 | - | | 3.2 Loans | 0.3 | 0.3 | 0.4 | | 3.3 Currency and Deposits | 0.9 | 0.8 | 0.9 | | 3.4 Other Assets | 0.8 | 0.7 | 0.7 | | 4. Reserve Assets | 15.6 | 16.2 | 15.0 | | B. Liabilities | 40.4 | 40.0 | 39.2 | | 1. Direct Investment in India | 14.5 | 14.4 | 14.5 | | 2. Portfolio Investment | 10.1 | 10.4 | 9.5 | | 2.1 Equity Securities | 6.5 | 5.9 | 5.4 | | 2.2 Debt securities | 3.6 | 4.5 | 4.1 | | 3. Other Investment | 15.9 | 15.3 | 15.3 | | 3.1 Trade Credits | 3.8 | 3.9 | 3.8 | | 3.2 Loans | 6.7 | 6.1 | 6.1 | | 3.3 Currency and Deposits | 4.9 | 4.8 | 4.8 | | 3.4 Other Liabilities | 0.5 | 0.4 | 0.6 | | Note - : Negligible. |
| Table 3: Composition of International Financial Assets and Liabilities of India | | (per cent) | | Period | Mar-18(PR) | Jun-18(PR) | Sep-18(PR) | Dec-18(PR) | Mar-19(P) | | A. Assets | | | | | | | 1. Direct Investment | 24.8 | 26.3 | 26.9 | 27.5 | 26.5 | | 2. Portfolio Investment | 0.6 | 0.5 | 0.4 | 0.4 | 0.7 | | 3. Other Investment | 7.6 | 6.8 | 6.8 | 6.9 | 8.5 | | 4. Reserve Assets | 67.0 | 66.4 | 65.9 | 65.2 | 64.3 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 36.0 | 36.6 | 36.4 | 37.4 | 37.0 | | 2. Portfolio Investment | 25.9 | 25.0 | 23.9 | 23.8 | 24.1 | | 3. Other Investment | 38.1 | 38.5 | 39.7 | 38.8 | 38.9 |
| Table 4: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Mar-18(PR) | Jun-18(PR) | Sep-18(PR) | Dec-18(PR) | Mar-19(P) | | Non-Debt Liabilities | 49.3 | 49.2 | 48.4 | 49.1 | 49.1 | | Debt Liabilities | 50.7 | 50.8 | 51.6 | 50.9 | 50.9 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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