Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2022[1]. Key Features of India’s IIP in end-September 2022 -
Net claims of non-residents on India increased by US$ 34.3 billion during Q2:2022-23 and stood at US$ 389.6 billion in September 2022. -
Overseas financial assets of Indian residents declined by US$ (-)43.9 billion during July-September 2022 due to reduction in reserves assets, even as trade credit, currency and deposits, and overseas direct investment recorded increase; the reduction in non-residents’ financial assets in India was relatively lower [US$ (-)9.6 billion] (Table 1). -
Reserve assets remained the dominant component (62.9 per cent share) in India’s international financial assets; it had declined by US$ 56.5 billion during July-September 2022, where valuation losses accounted for a major part (Table 2). -
The fall in India’s foreign liabilities during Q2:2022-23 was attributed primarily to direct investment (net) outflows; portfolio and other investments also recorded marginal decline on a net basis, barring trade credit which increased by US$ 5.1 billion. -
Variation in the exchange rate of rupee vis-a-vis other currencies also impacted the change in liabilities, when valued in US dollar terms. -
Debt and non-debt liabilities continued to have equal share in total external liabilities (Table 3). -
The ratio of international assets to international liabilities moderated to 68.5 per cent in September 2022 from 71.5 per cent a quarter ago. (Yogesh Dayal) Chief General Manager Press Release: 2022-2023/1468 Table 1: Overall International Investment Position of India | (US$ billion) | Period | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (P) | Net IIP (A-B) | -335.1 | -352.5 | -358.2 | -355.3 | -389.6 | A. Assets | 932.3 | 927.9 | 920.5 | 891.4 | 847.5 | 1. Direct Investment | 203.8 | 208.1 | 211.6 | 214.2 | 216.8 | 1.1 Equity and investment fund shares | 128.1 | 130.9 | 132.8 | 134.3 | 135.8 | 1.2 Debt instruments | 75.7 | 77.2 | 78.8 | 79.9 | 81.0 | 2. Portfolio Investment | 8.6 | 9.7 | 10.6 | 10.6 | 11.0 | 2.1 Equity and investment fund shares | 4.6 | 6.1 | 1.1 | 8.1 | 6.3 | 2.2 Debt Securities | 4.0 | 3.6 | 9.5 | 2.5 | 4.7 | 3. Other Investment | 84.5 | 76.5 | 91.0 | 77.4 | 87.0 | 3.1 Trade Credits | 11.8 | 12.8 | 18.5 | 21.2 | 24.8 | 3.2 Loans | 10.8 | 8.9 | 10.5 | 6.5 | 8.1 | 3.3 Currency and Deposits | 42.3 | 34.8 | 42.1 | 30.2 | 33.5 | 3.4 Other Assets | 19.6 | 20.0 | 19.9 | 19.5 | 20.6 | 4. Reserve Assets | 635.4 | 633.6 | 607.3 | 589.2 | 532.7 | B. Liabilities | 1,267.4 | 1,280.4 | 1,278.7 | 1,246.7 | 1,237.1 | 1. Direct Investment | 506.7 | 514.1 | 521.7 | 517.3 | 510.1 | 1.1 Equity and investment fund shares | 480.7 | 487.9 | 494.0 | 489.6 | 482.0 | 1.2 Debt instruments | 26.0 | 26.2 | 27.7 | 27.7 | 28.1 | 2. Portfolio Investment | 291.2 | 284.6 | 270.4 | 246.3 | 245.7 | 2.1 Equity and investment fund shares | 177.0 | 172.8 | 156.4 | 135.4 | 137.0 | 2.2 Debt Securities | 114.2 | 111.8 | 114.0 | 110.9 | 108.7 | 3. Other Investment | 469.4 | 481.6 | 486.6 | 483.1 | 481.3 | 3.1 Trade Credits | 104.4 | 113.4 | 118.2 | 123.2 | 128.3 | 3.2 Loans | 192.1 | 194.9 | 195.2 | 191.6 | 188.5 | 3.3 Currency and Deposits | 142.9 | 143.5 | 141.0 | 137.4 | 135.6 | 3.4 Other Assets | 30.0 | 29.8 | 32.2 | 30.9 | 28.9 | Memo item: Assets to Liability Ratio (%) | 73.6 | 72.5 | 72.0 | 71.5 | 68.5 | 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 | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (P) | A. Assets | 1. Direct Investment | 21.9 | 22.4 | 23.0 | 24.0 | 25.6 | 2. Portfolio Investment | 0.9 | 1.1 | 1.1 | 1.2 | 1.3 | 3. Other Investment | 9.1 | 8.2 | 9.9 | 8.7 | 10.2 | 4. Reserve Assets | 68.1 | 68.3 | 66.0 | 66.1 | 62.9 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | B. Liabilities | 1. Direct Investment | 40.0 | 40.2 | 40.8 | 41.5 | 41.2 | 2. Portfolio Investment | 23.0 | 22.2 | 21.1 | 19.8 | 19.9 | 3. Other Investment | 37.0 | 37.6 | 38.1 | 38.7 | 38.9 | 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 | Sep-21 (PR) | Dec-21 (PR) | Mar-22 (PR) | Jun-22 (PR) | Sep-22 (P) | Non-Debt Liabilities | 51.9 | 51.6 | 50.9 | 50.1 | 50.0 | Debt Liabilities | 48.1 | 48.4 | 49.1 | 49.9 | 50.0 | Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | | |