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Date : Dec 30, 2022
India’s International Investment Position (IIP), September 2022

Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2022[1].

Key Features of India’s IIP in end-September 2022

  • Net claims of non-residents on India increased by US$ 34.3 billion during Q2:2022-23 and stood at US$ 389.6 billion in September 2022.

  • Overseas financial assets of Indian residents declined by US$ (-)43.9 billion during July-September 2022 due to reduction in reserves assets, even as trade credit, currency and deposits, and overseas direct investment recorded increase; the reduction in non-residents’ financial assets in India was relatively lower [US$ (-)9.6 billion] (Table 1).

  • Reserve assets remained the dominant component (62.9 per cent share) in India’s international financial assets; it had declined by US$ 56.5 billion during July-September 2022, where valuation losses accounted for a major part (Table 2).

  • The fall in India’s foreign liabilities during Q2:2022-23 was attributed primarily to direct investment (net) outflows; portfolio and other investments also recorded marginal decline on a net basis, barring trade credit which increased by US$ 5.1 billion.

  • Variation in the exchange rate of rupee vis-a-vis other currencies also impacted the change in liabilities, when valued in US dollar terms.

  • Debt and non-debt liabilities continued to have equal share in total external liabilities (Table 3).

  • The ratio of international assets to international liabilities moderated to 68.5 per cent in September 2022 from 71.5 per cent a quarter ago.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/1468


Table 1: Overall International Investment Position of India
(US$ billion)
Period Sep-21 (PR) Dec-21 (PR) Mar-22 (PR) Jun-22 (PR) Sep-22 (P)
Net IIP (A-B) -335.1 -352.5 -358.2 -355.3 -389.6
A. Assets 932.3 927.9 920.5 891.4 847.5
1. Direct Investment 203.8 208.1 211.6 214.2 216.8
1.1 Equity and investment fund shares 128.1 130.9 132.8 134.3 135.8
1.2 Debt instruments 75.7 77.2 78.8 79.9 81.0
2. Portfolio Investment 8.6 9.7 10.6 10.6 11.0
2.1 Equity and investment fund shares 4.6 6.1 1.1 8.1 6.3
2.2 Debt Securities 4.0 3.6 9.5 2.5 4.7
3. Other Investment 84.5 76.5 91.0 77.4 87.0
3.1 Trade Credits 11.8 12.8 18.5 21.2 24.8
3.2 Loans 10.8 8.9 10.5 6.5 8.1
3.3 Currency and Deposits 42.3 34.8 42.1 30.2 33.5
3.4 Other Assets 19.6 20.0 19.9 19.5 20.6
4. Reserve Assets 635.4 633.6 607.3 589.2 532.7
B. Liabilities 1,267.4 1,280.4 1,278.7 1,246.7 1,237.1
1. Direct Investment 506.7 514.1 521.7 517.3 510.1
1.1 Equity and investment fund shares 480.7 487.9 494.0 489.6 482.0
1.2 Debt instruments 26.0 26.2 27.7 27.7 28.1
2. Portfolio Investment 291.2 284.6 270.4 246.3 245.7
2.1 Equity and investment fund shares 177.0 172.8 156.4 135.4 137.0
2.2 Debt Securities 114.2 111.8 114.0 110.9 108.7
3. Other Investment 469.4 481.6 486.6 483.1 481.3
3.1 Trade Credits 104.4 113.4 118.2 123.2 128.3
3.2 Loans 192.1 194.9 195.2 191.6 188.5
3.3 Currency and Deposits 142.9 143.5 141.0 137.4 135.6
3.4 Other Assets 30.0 29.8 32.2 30.9 28.9
Memo item: Assets to Liability Ratio (%) 73.6 72.5 72.0 71.5 68.5
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 Sep-21 (PR) Dec-21 (PR) Mar-22 (PR) Jun-22 (PR) Sep-22 (P)
A. Assets
1. Direct Investment 21.9 22.4 23.0 24.0 25.6
2. Portfolio Investment 0.9 1.1 1.1 1.2 1.3
3. Other Investment 9.1 8.2 9.9 8.7 10.2
4. Reserve Assets 68.1 68.3 66.0 66.1 62.9
Total 100.0 100.0 100.0 100.0 100.0
B. Liabilities
1. Direct Investment 40.0 40.2 40.8 41.5 41.2
2. Portfolio Investment 23.0 22.2 21.1 19.8 19.9
3. Other Investment 37.0 37.6 38.1 38.7 38.9
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 Sep-21 (PR) Dec-21 (PR) Mar-22 (PR) Jun-22 (PR) Sep-22 (P)
Non-Debt Liabilities 51.9 51.6 50.9 50.1 50.0
Debt Liabilities 48.1 48.4 49.1 49.9 50.0
Total 100.0 100.0 100.0 100.0 100.0

[1] India’s quarterly IIP is disseminated with a lag of one quarter. The previous quarterly IIP (for end-June 2022) was released on the RBI website on September 30, 2022.


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