Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2024[1]. Key Features of India’s IIP in end-June 2024: - Net claims of non-residents on India increased by US$ 6.7 billion during Q1:2024-25 to US$ 368.3 billion in June 2024.
- The rise in net claims of non-residents during the quarter was due to higher increase in foreign-owned assets in India (US$ 28.8 billion) vis-à-vis that in Indian residents’ overseas financial assets (US$ 22.1 billion) (Table 1).
- Inward direct investment was the largest contributor to the rise in foreign liabilities during April-June 2024 followed by currency and deposits, loans and trade credit.
- Reserve assets accounted for one-fourth of the rise in Indian residents’ overseas financial assets during the quarter; currency and deposits, loans and direct investments were other major factors.
- Reserve assets accounted for 62 per cent of India’s international financial assets in June 2024 (Table 2)
- The ratio of India’s international assets to international liabilities improved to 74.1 per cent in June 2024 from 71.3 per cent a year ago.
- The share of debt liabilities in total external liabilities increased marginally during the quarter and stood at 52 per cent in June 2024 (Table 3).
(Puneet Pancholy)
Chief General Manager Press Release: 2024-2025/1193
| Table 1: Overall International Investment Position of India | | (US$ billion) | | Period | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (P) | | Net IIP (A-B) | -379.0 | -382.0 | -368.2 | -361.6 | -368.3 | | A. Assets | 943.0 | 946.7 | 993.5 | 1,029.3 | 1,051.4 | | 1. Direct Investment | 228.2 | 232.1 | 236.5 | 242.3 | 246.1 | | 1.1 Equity and investment fund shares | 143.9 | 146.2 | 149.4 | 153.3 | 156.1 | | 1.2 Debt instruments | 84.3 | 85.9 | 87.1 | 89.0 | 90.0 | | 2. Portfolio Investment | 14.5 | 12.1 | 11.7 | 12.1 | 12.1 | | 2.1 Equity and investment fund shares | 12.6 | 9.0 | 9.5 | 10.6 | 10.4 | | 2.2 Debt securities | 1.9 | 3.1 | 2.2 | 1.5 | 1.7 | | 3. Other Investment | 105.2 | 114.8 | 122.8 | 128.5 | 141.2 | | 3.1 Trade Credits | 29.7 | 30.9 | 31.7 | 33.5 | 32.9 | | 3.2 Loans | 13.0 | 8.3 | 14.8 | 13.6 | 16.8 | | 3.3 Currency and Deposits | 33.1 | 45.8 | 44.5 | 52.8 | 57.0 | | 3.4 Other Assets | 29.4 | 29.8 | 31.8 | 28.6 | 34.5 | | 4. Reserve Assets | 595.1 | 587.7 | 622.5 | 646.4 | 652.0 | | B. Liabilities | 1,322.0 | 1,328.7 | 1,361.7 | 1,390.9 | 1,419.7 | | 1. Direct Investment | 532.3 | 528.5 | 536.8 | 542.7 | 552.2 | | 1.1 Equity and investment fund shares | 501.4 | 497.6 | 505.6 | 511.1 | 520.3 | | 1.2 Debt instruments | 30.9 | 30.9 | 31.2 | 31.6 | 31.9 | | 2. Portfolio Investment | 258.5 | 259.3 | 269.1 | 277.2 | 277.3 | | 2.1 Equity and investment fund shares | 152.9 | 154.6 | 161.2 | 162.1 | 160.9 | | 2.2 Debt securities | 105.6 | 104.7 | 107.9 | 115.1 | 116.4 | | 3. Other Investment | 531.2 | 540.9 | 555.8 | 571.0 | 590.2 | | 3.1 Trade Credits | 119.3 | 124.8 | 123.2 | 123.6 | 126.6 | | 3.2 Loans | 206.9 | 208.8 | 214.9 | 221.9 | 225.0 | | 3.3 Currency and Deposits | 144.1 | 146.2 | 149.3 | 154.8 | 160.6 | | 3.4 Other Liabilities | 60.9 | 61.1 | 68.4 | 70.7 | 78.0 | | of which: | | | | | | | Special drawing rights (Net incurrence of liabilities) | 22.0 | 21.8 | 22.2 | 21.9 | 21.8 | | Memo Item: Assets to Liability ratio (%) | 71.3 | 71.3 | 73.0 | 74.0 | 74.1 | Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised; and R: Revised.
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 | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (P) | | A. Assets | | 1. Direct Investment | 24.2 | 24.5 | 23.8 | 23.5 | 23.4 | | 2. Portfolio Investment | 1.5 | 1.3 | 1.2 | 1.2 | 1.2 | | 3. Other Investment | 11.2 | 12.1 | 12.3 | 12.5 | 13.4 | | 4. Reserve Assets | 63.1 | 62.1 | 62.7 | 62.8 | 62.0 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 40.3 | 39.8 | 39.4 | 39.0 | 38.9 | | 2. Portfolio Investment | 19.6 | 19.5 | 19.8 | 19.9 | 19.5 | | 3. Other Investment | 40.1 | 40.7 | 40.8 | 41.1 | 41.6 | | 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 | Jun-23 (PR) | Sep-23 (PR) | Dec-23 (PR) | Mar-24 (PR) | Jun-24 (P) | | Non-Debt Liabilities | 49.5 | 49.1 | 49.0 | 48.4 | 48.0 | | Debt Liabilities | 50.5 | 50.9 | 51.0 | 51.6 | 52.0 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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