Today, the Reserve Bank released data relating to India’s international investment position (IIP) as at end-September 2017. Highlights: -
Net claims of non-residents on India declined by US$ 1.9 billion over the previous quarter due to higher increase in Indian residents’ overseas financial assets as compared with foreign-owned assets in India (Table 1). -
Indian residents’ financial assets abroad exhibited an increase of US$ 18.6 billion over the level in the previous quarter, a substantial portion of which came from increase in reserve assets (Tables 1 and 2). -
Foreign-owned assets in India increased by US$ 16.7 billion during the quarter, mainly due to rise in foreign direct investment (FDI), trade credit and portfolio investment in debt securities; overseas investment in portfolio equity, however, declined during the quarter. -
Reserve assets had over two-thirds share in India’s international assets, followed by overseas direct investment; debt and non-debt liabilities had nearly equal shares in total liabilities to non-residents. (Table 3). -
The ratio of India’s international financial assets to international financial liabilities stood at 59.5 per cent in September 2017 (58.6 per cent in June-2017). | Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Sep-16(R) | Dec-16(PR) | Mar-17(PR) | June-17(PR) | Sep-17(P) | | Net IIP | -366.8 | -361.7 | -394.5 | -406.7 | -404.8 | | A. Assets | 567.3 | 543.4 | 564.2 | 576.5 | 595.1 | | 1. Direct Investment | 140.6 | 144.1 | 148.2 | 151.3 | 153.6 | | 2. Portfolio Investment | 2.3 | 2.3 | 2.6 | 2.1 | 2.5 | | 2.1 Equity Securities | 2.0 | 2.3 | 1.6 | 2.0 | 2.4 | | 2.2 Debt Securities | 0.3 | 0.0 | 1.0 | 0.1 | 0.1 | | 3. Other Investment | 52.4 | 38.1 | 43.4 | 36.6 | 38.8 | | 3.1 Trade Credits | 2.2 | 1.9 | 1.8 | 1.2 | 1.2 | | 3.2 Loans | 6.3 | 4.2 | 7.3 | 5.1 | 5.9 | | 3.3 Currency & Deposits | 26.8 | 14.9 | 20.1 | 16.1 | 17.2 | | 3.4 Other Assets | 17.1 | 17.1 | 14.2 | 14.2 | 14.5 | | 4. Reserve Assets | 372.0 | 358.9 | 370.0 | 386.5 | 400.2 | | B. Liabilities | 934.0 | 905.1 | 958.7 | 983.2 | 999.9 | | 1. Direct Investment | 311.6 | 318.5 | 342.6 | 353.3 | 364.2 | | 2. Portfolio Investment | 232.1 | 221.1 | 238.6 | 251.2 | 254.0 | | 2.1 Equity Securities | 148.1 | 140.6 | 154.0 | 154.9 | 150.1 | | 2.2 Debt securities | 84.0 | 80.5 | 84.6 | 96.3 | 103.9 | | 3. Other Investment | 390.3 | 365.5 | 377.5 | 378.7 | 381.7 | | 3.1 Trade Credits | 82.0 | 84.8 | 88.9 | 89.6 | 93.6 | | 3.2 Loans | 167.0 | 160.3 | 159.9 | 158.6 | 156.9 | | 3.3 Currency & Deposits | 130.2 | 110.0 | 117.1 | 118.5 | 118.3 | | 3.4 Other Liabilities | 11.1 | 10.4 | 11.6 | 12.0 | 12.9 | | Memo item: Assets to Liability Ratio (%) | 60.7 | 60.0 | 58.9 | 58.6 | 59.5 | R: Revised PR: Partially revised P: Provisional;
Note: 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-16(R) | Dec-16(PR) | Mar-17(PR) | June-17(PR) | Sep-17(P) | | A. Assets | | | | | | | 1. Direct Investment | 24.8 | 26.5 | 26.3 | 26.2 | 25.8 | | 2. Portfolio Investment | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | | 3. Other Investment | 9.2 | 7.0 | 7.7 | 6.4 | 6.5 | | 4. Reserve Assets | 65.6 | 66.1 | 65.6 | 67.0 | 67.3 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 33.4 | 35.2 | 35.7 | 35.9 | 36.4 | | 2. Portfolio Investment | 24.8 | 24.4 | 24.9 | 25.6 | 25.4 | | 3. Other Investment | 41.8 | 40.4 | 39.4 | 38.5 | 38.2 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Sep-16(R) | Dec-16(PR) | Mar-17(PR) | June-17(PR) | Sep-17(P) | | Non-Debt Liabilities | 47.7 | 49.2 | 50.3 | 50.1 | 49.8 | | Debt Liabilities | 52.3 | 50.8 | 49.7 | 49.9 | 50.2 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | Ajit Prasad
Assistant Adviser Press Release : 2017-2018/1774
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