India’s International Investment Position (IIP), December 2021

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প্ৰকাশ কৰা তাৰিখ মাৰ্চ 31, 2022

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India’s International Investment Position (IIP), December 2021

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

¹ India’s quarterly IIP is disseminated with a lag of one quarter. The IIP for end-September 2021 was placed in the public domain on December 31, 2021.