Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2018. Key Features of India’s IIP in June 2018 -
Net claims of non-residents on India declined by US$ 13.1 billion from their level at the end of the previous quarter. -
Indian residents’ overseas financial assets as well as foreign owned assets in India declined during the quarter, with the decline in the latter being larger (Table 1). -
Of the decline in Indian residents’ foreign assets, as much as 92.2 per cent occurred through reduction in reserve assets, which exceeded the increase in overseas direct during the quarter. -
The decline in foreign-owned assets in India was broad-based across foreign direct investment, portfolio investment, trade credit, commercial loans as well as currency and deposits. -
Large valuation effects associated with the depreciation of the Indian Rupee against the US dollar during the quarter impacted net claims of non-residents. -
Reserve assets accounted for two-thirds of India’s international financial assets (Table 2); debt and non-debt liabilities had almost equal share in total liabilities (Table 3). -
The ratio of India’s international financial assets to international financial liabilities stood at 60.1 per cent in June 2018 (59.2 per cent a year ago). | Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Jun-17(R) | Sep-17(PR) | Dec-17(PR) | Mar-18(PR) | June-18(P) | | Net IIP (A-B) | -400.8 | -397.5 | -422.0 | -419.5 | -406.4 | | A. Assets | 582.3 | 600.9 | 613.1 | 632.8 | 612.4 | | 1. Direct Investment | 151.2 | 153.5 | 155.2 | 157.4 | 160.7 | | 2. Portfolio Investment | 2.1 | 2.5 | 2.6 | 2.7 | 1.7 | | 2.1 Equity Securities | 2.0 | 2.4 | 2.3 | 1.2 | 1.5 | | 2.2 Debt Securities | 0.1 | 0.1 | 0.3 | 1.5 | 0.2 | | 3. Other Investment | 42.4 | 44.7 | 46.3 | 48.2 | 44.3 | | 3.1 Trade Credits | 1.2 | 1.3 | 1.6 | 1.7 | 1.4 | | 3.2 Loans | 5.2 | 6.0 | 5.6 | 8.2 | 8.3 | | 3.3 Currency & Deposits | 18.1 | 19.2 | 20.8 | 20.8 | 16.3 | | 3.4 Other Assets | 18.0 | 18.3 | 18.4 | 17.5 | 18.3 | | 4. Reserve Assets | 386.5 | 400.2 | 409.1 | 424.5 | 405.7 | | B. Liabilities | 983.1 | 998.4 | 1035.1 | 1052.3 | 1018.8 | | 1. Direct Investment | 353.4 | 364.3 | 377.6 | 379.3 | 372.2 | | 2. Portfolio Investment | 251.1 | 254.0 | 267.7 | 272.4 | 254.5 | | 2.1 Equity Securities | 154.9 | 150.1 | 155.7 | 155.1 | 144.4 | | 2.2 Debt securities | 96.2 | 103.9 | 112.0 | 117.3 | 110.1 | | 3. Other Investment | 378.6 | 380.2 | 389.8 | 400.6 | 392.1 | | 3.1 Trade Credits | 89.6 | 93.6 | 98.4 | 103.2 | 99.6 | | 3.2 Loans | 158.2 | 156.1 | 155.5 | 159.3 | 157.7 | | 3.3 Currency & Deposits | 118.5 | 118.3 | 123.5 | 126.5 | 124.5 | | 3.4 Other Liabilities | 12.3 | 12.2 | 12.4 | 11.7 | 10.3 | | Memo item: Assets to Liability Ratio (%) | 59.2 | 60.2 | 59.2 | 60.1 | 60.1 | 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 | Jun-17(R) | Sep-17(PR) | Dec-17(PR) | Mar-17(PR) | Jun-18(P) | | A. Assets | | | | | | | 1. Direct Investment | 26.0 | 25.6 | 25.3 | 24.9 | 26.2 | | 2. Portfolio Investment | 0.4 | 0.4 | 0.4 | 0.4 | 0.3 | | 3. Other Investment | 7.2 | 7.4 | 7.6 | 7.6 | 7.3 | | 4. Reserve Assets | 66.4 | 66.6 | 66.7 | 67.1 | 66.2 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | | | | | | 1. Direct Investment | 35.9 | 36.5 | 36.5 | 36.0 | 36.5 | | 2. Portfolio Investment | 25.6 | 25.4 | 25.9 | 25.9 | 25.0 | | 3. Other Investment | 38.5 | 38.1 | 37.6 | 38.1 | 38.5 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Jun-17(R) | Sep-17(PR) | Dec-17(PR) | Mar-17(PR) | Jun-18(P) | | Non-Debt Liabilities | 50.1 | 49.9 | 50.0 | 49.3 | 49.2 | | Debt Liabilities | 49.9 | 50.1 | 50.0 | 50.7 | 50.8 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | Ajit Prasad
Assistant Adviser Press Release : 2018-2019/734
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