Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2021. Key Features of India’s IIP in June 2021 -
Net claims of non-residents on India declined by US$ 24.3 billion during April-June 2021 to US$ 327.0 billion as at end-June 2021 (Table 1). -
Reserve assets accounted for 95 per cent of the increase of US$ 35.9 billion in Indian residents’ overseas financial assets during the quarter. -
Foreign-owned assets in India recorded an increase of US$ 11.6 billion, corresponding to an equal rise in inward foreign direct investment. -
Variation in exchange rate of rupee vis-a-vis other currencies affected change in liabilities, when valued in US$ terms. -
Reserve assets continued to have the dominant share (68.3 per cent) in India’s international financial assets (Table 2). -
The share of non-debt liabilities in total international liabilities edged up to 52.7 per cent in June 2021 (Table 3). -
The ratio of international assets to international liabilities has gradually improved to 73.2 per cent in June 2021 from 68.5 per cent a year ago. (Yogesh Dayal)
Chief General Manager Press Release: 2021-2022/963
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | June-20 (R) | Sep-20 (PR) | Dec-20 (PR) | Mar-21 (PR) | June-21 (P) | | Net IIP (A-B) | -344.8 | -337.7 | -340.7 | -351.3 | -327.0 | | A. Assets | 749.0 | 802.8 | 852.3 | 859.3 | 895.2 | | 1. Direct Investment | 185.6 | 188.3 | 190.9 | 193.9 | 199.2 | | 1.1 Equity and investment fund shares | 120.3 | 121.3 | 122.5 | 122.7 | 125.3 | | 1.2 Debt instruments | 65.3 | 67.0 | 68.4 | 71.2 | 73.9 | | 2. Portfolio Investment | 4.3 | 5.0 | 6.3 | 7.9 | 7.9 | | 2.1 Equity and investment fund shares | 0.8 | 1.9 | 2.5 | 2.3 | 3.1 | | 2.2 Debt Securities | 3.5 | 3.1 | 3.8 | 5.6 | 4.8 | | 3. Other Investment | 53.4 | 64.8 | 69.3 | 80.5 | 77.0 | | 3.1 Trade Credits | 1.1 | 2.8 | 3.2 | 5.6 | 7.9 | | 3.2 Loans | 7.4 | 9.0 | 10.6 | 13.3 | 13.7 | | 3.3 Currency and Deposits | 27.7 | 34.9 | 37.3 | 42.4 | 35.9 | | 3.4 Other Assets | 17.2 | 18.1 | 18.2 | 19.2 | 19.5 | | 4. Reserve Assets | 505.7 | 544.7 | 585.8 | 577.0 | 611.1 | | B. Liabilities | 1,093.8 | 1,140.5 | 1,193.0 | 1,210.6 | 1,222.2 | | 1. Direct Investment | 419.4 | 455.9 | 480.2 | 482.1 | 493.7 | | 1.1 Equity and investment fund shares | 395.8 | 430.7 | 454.6 | 456.9 | 468.0 | | 1.2 Debt instruments | 23.6 | 25.2 | 25.6 | 25.2 | 25.7 | | 2. Portfolio Investment | 241.7 | 253.3 | 274.0 | 282.0 | 281.3 | | 2.1 Equity and investment fund shares | 139.0 | 149.1 | 170.6 | 177.3 | 176.2 | | 2.2 Debt securities | 102.7 | 104.2 | 103.4 | 104.7 | 105.1 | | 3. Other Investment | 432.7 | 431.3 | 438.8 | 446.5 | 447.2 | | 3.1 Trade Credits | 104.0 | 102.2 | 102.6 | 100.3 | 102.2 | | 3.2 Loans | 184.8 | 180.8 | 184.0 | 190.0 | 189.5 | | 3.3 Currency and Deposits | 132.9 | 137.5 | 140.7 | 142.1 | 141.9 | | 3.4 Other Liabilities | 11.0 | 10.8 | 11.5 | 14.1 | 13.6 | | Memo item: Assets to Liability Ratio (%) | 68.5 | 70.4 | 71.4 | 71.0 | 73.2 | 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 | June-20 (R) | Sep-20 (PR) | Dec-20 (PR) | Mar-21 (PR) | June-21 (P) | | A. Assets | | | | | | | 1. Direct Investment | 24.8 | 23.4 | 22.4 | 22.6 | 22.3 | | 2. Portfolio Investment | 0.6 | 0.6 | 0.7 | 0.9 | 0.9 | | 3. Other Investment | 7.1 | 8.1 | 8.2 | 9.4 | 8.5 | | 4. Reserve Assets | 67.5 | 67.9 | 68.7 | 67.1 | 68.3 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 38.3 | 40.0 | 40.2 | 39.8 | 40.4 | | 2. Portfolio Investment | 22.1 | 22.2 | 23.0 | 23.3 | 23.0 | | 3. Other Investment | 39.6 | 37.8 | 36.8 | 36.9 | 36.6 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | June-20 (R) | Sep-20 (PR) | Dec-20 (PR) | Mar-21 (PR) | June-21 (P) | | Non-Debt Liabilities | 48.9 | 50.8 | 52.4 | 52.4 | 52.7 | | Debt Liabilities | 51.1 | 49.2 | 47.6 | 47.6 | 47.3 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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