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India’s International Investment Position (IIP), September 20171
January, 02nd 2018

Today, the Reserve Bank released data relating to India’s international investment position (IIP) as at end-September 2017.

Highlights:

  • Net claims of non-residents on India declined by US$ 1.9 billion over the previous quarter due to higher increase in Indian residents’ overseas financial assets as compared with foreign-owned assets in India (Table 1).

  • Indian residents’ financial assets abroad exhibited an increase of US$ 18.6 billion over the level in the previous quarter, a substantial portion of which came from increase in reserve assets (Tables 1 and 2).

  • Foreign-owned assets in India increased by US$ 16.7 billion during the quarter, mainly due to rise in foreign direct investment (FDI), trade credit and portfolio investment in debt securities; overseas investment in portfolio equity, however, declined during the quarter.

  • Reserve assets had over two-thirds share in India’s international assets, followed by overseas direct investment; debt and non-debt liabilities had nearly equal shares in total liabilities to non-residents. (Table 3).

  • The ratio of India’s international financial assets to international financial liabilities stood at 59.5 per cent in September 2017 (58.6 per cent in June-2017).

Table 1: Overall International Investment Position of India
(US $ billion)
Period Sep-16(R) Dec-16(PR) Mar-17(PR) June-17(PR) Sep-17(P)
Net IIP -366.8 -361.7 -394.5 -406.7 -404.8
A. Assets 567.3 543.4 564.2 576.5 595.1
1. Direct Investment 140.6 144.1 148.2 151.3 153.6
2. Portfolio Investment 2.3 2.3 2.6 2.1 2.5
      2.1 Equity Securities 2.0 2.3 1.6 2.0 2.4
      2.2 Debt Securities 0.3 0.0 1.0 0.1 0.1
3. Other Investment 52.4 38.1 43.4 36.6 38.8
      3.1 Trade Credits 2.2 1.9 1.8 1.2 1.2
      3.2 Loans 6.3 4.2 7.3 5.1 5.9
      3.3 Currency & Deposits 26.8 14.9 20.1 16.1 17.2
      3.4 Other Assets 17.1 17.1 14.2 14.2 14.5
4. Reserve Assets 372.0 358.9 370.0 386.5 400.2
B. Liabilities 934.0 905.1 958.7 983.2 999.9
1. Direct Investment 311.6 318.5 342.6 353.3 364.2
2. Portfolio Investment 232.1 221.1 238.6 251.2 254.0
      2.1 Equity Securities 148.1 140.6 154.0 154.9 150.1
      2.2 Debt securities 84.0 80.5 84.6 96.3 103.9
 3. Other Investment 390.3 365.5 377.5 378.7 381.7
      3.1 Trade Credits 82.0 84.8 88.9 89.6 93.6
      3.2 Loans 167.0 160.3 159.9 158.6 156.9
      3.3 Currency & Deposits 130.2 110.0 117.1 118.5 118.3
      3.4 Other Liabilities 11.1 10.4 11.6 12.0 12.9
Memo item: Assets to Liability Ratio (%) 60.7 60.0 58.9 58.6 59.5
R: Revised PR: Partially revised P: Provisional;
Note: 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-16(R) Dec-16(PR) Mar-17(PR) June-17(PR) Sep-17(P)
A. Assets          
     1. Direct Investment 24.8 26.5 26.3 26.2 25.8
     2. Portfolio Investment 0.4 0.4 0.4 0.4 0.4
     3. Other Investment 9.2 7.0 7.7 6.4 6.5
     4. Reserve Assets 65.6 66.1 65.6 67.0 67.3
    Assets/Liabilities 100.0 100.0 100.0 100.0 100.0
B. Liabilities
     1. Direct Investment 33.4 35.2 35.7 35.9 36.4
     2. Portfolio Investment 24.8 24.4 24.9 25.6 25.4
     3. Other Investment 41.8 40.4 39.4 38.5 38.2

 

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period Sep-16(R) Dec-16(PR) Mar-17(PR) June-17(PR) Sep-17(P)
Non-Debt Liabilities 47.7 49.2 50.3 50.1 49.8
Debt Liabilities 52.3 50.8 49.7 49.9 50.2
Total 100.0 100.0 100.0 100.0 100.0

Ajit Prasad
Assistant Adviser

Press Release : 2017-2018/1774

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