Today, the Reserve Bank released data relating to India’s International Investment Position at end-December 2021. Key Features of India’s IIP in December 2021 -
Net claims of non-residents on India increased by US$ 21.1 billion during October-December 2021 due to an increase of US$ 16.2 billion in foreign-owned assets in India combined with a decline of US$ 4.9 billion in Indian residents’ overseas financial assets (Table 1). -
Higher inward direct investment, trade credit and loans contributed to the increase in non-residents’ claims on India even as foreign portfolio investment in India reduced during the quarter. -
Indian residents’ overseas financial assets declined during the quarter, mainly due to reduction in currency and deposits. -
Reserve assets accounted for 68.4 per cent of Indian residents’ foreign assets (Table 2). -
The share of debt liabilities in total liabilities increased marginally during the quarter and stood at 48.5 per cent in December 2021 (Table 3). -
The ratio of India’s international financial assets to international financial liabilities stood lower at 72.1 per cent in December 2021 (73.4 per cent in September 2021). (Yogesh Dayal)
Chief General Manager Press Release: 2021-2022/1939
| Table 1: Overall International Investment Position of India | | (US $ billion) | | Period | Dec-20 (R) | Mar-21 (PR) | Jun-21 (PR) | Sep-21 (PR) | Dec-21 (P) | | Net IIP (A-B) | -345.2 | -355.3 | -331.1 | -336.8 | -357.9 | | A. Assets | 852.4 | 859.4 | 895.1 | 931.1 | 926.2 | | 1. Direct Investment | 190.9 | 193.9 | 199.3 | 202.6 | 206.4 | | 1.1 Equity and investment fund shares | 122.5 | 122.7 | 125.3 | 126.9 | 129.3 | | 1.2 Debt instruments | 68.4 | 71.2 | 74.0 | 75.7 | 77.1 | | 2. Portfolio Investment | 6.3 | 7.9 | 7.9 | 8.6 | 9.7 | | 2.1 Equity and investment fund shares | 2.5 | 2.3 | 3.1 | 4.6 | 6.4 | | 2.2 Debt Securities | 3.8 | 5.6 | 4.8 | 4.0 | 3.3 | | 3. Other Investment | 69.4 | 80.6 | 76.8 | 84.5 | 76.5 | | 3.1 Trade Credit | 3.2 | 5.6 | 7.9 | 11.8 | 12.9 | | 3.2 Loans | 10.6 | 13.3 | 13.6 | 10.8 | 8.9 | | 3.3 Currency and Deposits | 37.3 | 42.4 | 35.9 | 42.3 | 34.8 | | 3.4 Other Assets | 18.3 | 19.3 | 19.4 | 19.6 | 19.9 | | 4. Reserve Assets | 585.8 | 577.0 | 611.1 | 635.4 | 633.6 | | B. Liabilities | 1197.6 | 1214.7 | 1226.2 | 1267.9 | 1284.1 | | 1. Direct Investment | 480.3 | 482.2 | 493.8 | 506.9 | 514.3 | | 1.1 Equity and investment fund shares | 454.6 | 456.9 | 468.0 | 480.8 | 487.9 | | 1.2 Debt instruments | 25.7 | 25.3 | 25.8 | 26.1 | 26.4 | | 2. Portfolio Investment | 270.3 | 278.5 | 277.8 | 282.6 | 277.2 | | 2.1 Equity and investment fund shares | 170.6 | 177.3 | 176.2 | 177.0 | 172.8 | | 2.2 Debt securities | 99.7 | 101.2 | 101.6 | 105.6 | 104.4 | | 3. Other Investment | 447.0 | 454.0 | 454.6 | 478.4 | 492.6 | | 3.1 Trade Credit | 102.6 | 100.3 | 102.1 | 104.4 | 113.5 | | 3.2 Loans | 192.2 | 197.5 | 197.1 | 201.1 | 204.0 | | 3.3 Currency and Deposits | 142.5 | 143.8 | 143.1 | 142.9 | 143.5 | | 3.4 Other Liabilities | 9.7 | 12.4 | 12.3 | 30.0 | 31.6 | Memo item:
Assets to Liability Ratio (%) | 71.2 | 70.7 | 73.0 | 73.4 | 72.1 | 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 | Dec-20 (R) | Mar-21 (PR) | Jun-21 (PR) | Sep-21 (PR) | Dec-21 (P) | | A. Assets | | | | | | | 1. Direct Investment | 22.4 | 22.6 | 22.3 | 21.8 | 22.3 | | 2. Portfolio Investment | 0.7 | 0.9 | 0.9 | 0.9 | 1.0 | | 3. Other Investment | 8.2 | 9.4 | 8.5 | 9.1 | 8.3 | | 4. Reserve Assets | 68.7 | 67.1 | 68.3 | 68.2 | 68.4 | | Assets/Liabilities | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | B. Liabilities | | 1. Direct Investment | 40.1 | 39.7 | 40.3 | 40.0 | 40.0 | | 2. Portfolio Investment | 22.6 | 22.9 | 22.6 | 22.3 | 21.6 | | 3. Other Investment | 37.3 | 37.4 | 37.1 | 37.7 | 38.4 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India | | (per cent) | | Period | Dec-20 (R) | Mar-21 (PR) | Jun-21 (PR) | Sep-21 (PR) | Dec-21 (P) | | Non-Debt Liabilities | 52.2 | 52.2 | 52.5 | 51.9 | 51.5 | | Debt Liabilities | 47.8 | 47.8 | 47.5 | 48.1 | 48.5 | | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
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