Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2022[1]. Key Features of India’s IIP in end-June 2022 -
Net claims of non-residents on India inched up marginally by US$ 0.7 billion during Q1:2022-23 to US$ 359.5 billion in June 2022. -
During April-June 2022, Indian residents’ overseas financial assets fell by US$ (-)28.9 billion, which was close to the drop of US$ (-)28.2 billion in foreign-owned financial assets in India (Table 1). -
The decline in Indian residents’ foreign assets during the quarter was mainly due to the reduction in reserve assets, loans as well as currency and deposits. -
Around 85 per cent of the fall in India’s foreign liabilities during Q1:2022-23 was attributed to portfolio investment (net) outflows. -
Reserve assets accounted for around two thirds of India’s international financial assets (Table 2). -
Variation in the exchange rate of rupee vis-a-vis other currencies had a significant impact on the change in liabilities, when valued in US$ terms. -
The share of debt liabilities in total external liabilities increased to 50.0 per cent as at end-June 2022 from 47.5 per cent a year ago (Table 3). -
India’s international financial assets covered 71.3 per cent of international financial liabilities as at end-June 2022. (Yogesh Dayal) Chief General Manager Press Release: 2022-2023/973 Table 1: Overall International Investment Position of India | (US$ billion) | Period | Jun-21 (PR) | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (P) | Net IIP (A-B) | -330.7 | -335.1 | -353.1 | -358.8 | -359.5 | A. Assets | 895.4 | 932.3 | 927.9 | 920.5 | 891.6 | 1. Direct Investment | 199.6 | 203.8 | 208.1 | 211.6 | 214.3 | 1.1 Equity and investment fund shares | 125.6 | 128.1 | 130.9 | 132.8 | 134.3 | 1.2 Debt instruments | 74.0 | 75.7 | 77.2 | 78.8 | 80.0 | 2. Portfolio Investment | 7.9 | 8.6 | 9.7 | 10.6 | 10.6 | 2.1 Equity and investment fund shares | 3.1 | 4.6 | 6.1 | 1.1 | 8.1 | 2.2 Debt Securities | 4.8 | 4.0 | 3.6 | 9.5 | 2.5 | 3. Other Investment | 76.8 | 84.5 | 76.5 | 91.0 | 77.5 | 3.1 Trade Credits | 7.9 | 11.8 | 12.8 | 18.5 | 21.3 | 3.2 Loans | 13.6 | 10.8 | 8.9 | 10.5 | 6.5 | 3.3 Currency and Deposits | 35.9 | 42.3 | 34.8 | 42.1 | 30.2 | 3.4 Other Assets | 19.4 | 19.6 | 20.0 | 19.9 | 19.5 | 4. Reserve Assets | 611.1 | 635.4 | 633.6 | 607.3 | 589.2 | B. Liabilities | 1,226.1 | 1,267.4 | 1,281.0 | 1,279.3 | 1,251.1 | 1. Direct Investment | 493.7 | 506.7 | 514.2 | 521.7 | 517.3 | 1.1 Equity and investment fund shares | 468.0 | 480.7 | 487.9 | 494.0 | 489.6 | 1.2 Debt instruments | 25.7 | 26.0 | 26.3 | 27.7 | 27.7 | 2. Portfolio Investment | 284.9 | 290.8 | 284.7 | 270.5 | 246.5 | 2.1 Equity and investment fund shares | 176.2 | 177.0 | 172.8 | 156.4 | 135.5 | 2.2 Debt Securities | 108.7 | 113.8 | 111.9 | 114.1 | 111.0 | 3. Other Investment | 447.5 | 469.9 | 482.1 | 487.1 | 487.3 | 3.1 Trade Credits | 102.1 | 104.4 | 113.5 | 118.1 | 126.9 | 3.2 Loans | 190.0 | 192.6 | 195.3 | 195.8 | 192.1 | 3.3 Currency and Deposits | 143.1 | 142.9 | 143.5 | 141.0 | 137.4 | 3.4 Other Assets | 12.3 | 30.0 | 29.8 | 32.2 | 30.9 | Memo item: Assets to Liability Ratio (%) | 73.0 | 73.6 | 72.4 | 72.0 | 71.3 | Note: 1. PR: Partially revised, P: Provisional 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-21 (PR) | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (P) | A. Assets | 1. Direct Investment | 22.3 | 21.9 | 22.4 | 23.0 | 24.0 | 2. Portfolio Investment | 0.9 | 0.9 | 1.0 | 1.2 | 1.2 | 3. Other Investment | 8.6 | 9.1 | 8.2 | 9.8 | 8.7 | 4. Reserve Assets | 68.2 | 68.1 | 68.4 | 66.0 | 66.1 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 40.3 | 40.0 | 40.1 | 40.8 | 41.3 | 2. Portfolio Investment | 23.2 | 22.9 | 22.3 | 21.1 | 19.7 | 3. Other Investment | 36.5 | 37.1 | 37.6 | 38.1 | 39.0 | 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-21 (PR) | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (P) | Non-Debt Liabilities | 52.5 | 51.9 | 51.6 | 50.8 | 50.0 | Debt Liabilities | 47.5 | 48.1 | 48.4 | 49.2 | 50.0 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | |