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

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এই তারিখে প্রকাশিত ডিসেম্বর 31, 2021

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

Today, the Reserve Bank released data relating to India’s International Investment Position at end-September 2021^[1].

Key Features of India’s IIP in September 2021

Net claims of non-residents on India increased by US$ 5.4 billion during July-September 2021 (Table 1).
Foreign-owned assets in India increased by US$ 37.3 billion during the quarter whereas Indian residents’ overseas financial assets recorded lower rise of US$ 31.9 billion, nearly three fourths of which came from build-up in reserve assets; partly reflecting the allocation of special drawing rights (SDRs) by the International Monetary Fund (IMF) in August 2021.
Reserve assets accounted for 68.5 per cent of India’s international financial assets in September 2021 (Table 2).
The share of debt liabilities in total liabilities increased marginally during the quarter to 47.8 per cent in September 2021 (Table 3).
The ratio of international assets to international liabilities has gradually improved to 73.6 per cent in September 2021 from 70.4 per cent a year ago.

(Yogesh Dayal)
Chief General Manager

Press Release: 2021-2022/1462

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Sep-20 (R)	Dec-20 (PR)	Mar-21 (PR)	Jun-21 (PR)	Sep-21 (P)
Net IIP (A-B)	-337.8	-340.7	-351.1	-326.4	-331.8
A. Assets	802.8	852.3	859.5	895.2	927.1
1. Direct Investment	188.3	190.9	193.9	199.4	202.8
1.1 Equity and investment fund shares	121.3	122.5	122.7	125.4	127.1
1.2 Debt instruments	67.0	68.4	71.2	74.0	75.7
2. Portfolio Investment	5.0	6.3	7.9	7.9	8.6
2.1 Equity and investment fund shares	1.9	2.5	2.3	3.1	4.6
2.2 Debt Securities	3.1	3.8	5.6	4.8	4.0
3. Other Investment	64.8	69.4	80.6	76.8	80.3
3.1 Trade Credits	2.8	3.2	5.6	7.9	11.9
3.2 Loans	9.0	10.6	13.3	13.6	10.1
3.3 Currency and Deposits	34.9	37.3	42.4	35.9	41.1
3.4 Other Assets	18.1	18.2	19.2	19.4	17.2
4. Reserve Assets	544.7	585.8	577.0	611.1	635.4
B. Liabilities	1140.6	1193.0	1210.6	1221.6	1258.9
1. Direct Investment	456.0	480.2	482.2	493.8	506.7
1.1 Equity and investment fund shares	430.7	454.6	456.9	468.0	480.7
1.2 Debt instruments	25.3	25.6	25.3	25.8	26.0
2. Portfolio Investment	244.3	265.6	274.1	272.9	276.4
2.1 Equity and investment fund shares	149.1	170.7	177.3	176.2	177.0
2.2 Debt securities	95.2	94.9	96.8	96.7	99.4
3. Other Investment	440.3	447.2	454.3	454.9	475.8
3.1 Trade Credits	102.2	102.6	100.3	102.1	100.3
3.2 Loans	189.7	192.4	197.8	197.4	201.2
3.3 Currency and Deposits	138.8	142.5	143.8	143.1	142.9
3.4 Other Liabilities	9.5	9.7	12.4	12.3	31.4
Memo item: Assets to Liability Ratio (%)	70.4	71.4	71.0	73.3	73.6
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	Sep-20 (R)	Dec-20 (PR)	Mar-21 (PR)	Jun-21 (PR)	Sep-21 (P)
A. Assets
1. Direct Investment	23.5	22.4	22.6	22.3	21.9
2. Portfolio Investment	0.6	0.7	0.9	0.9	0.9
3. Other Investment	8.1	8.1	9.4	8.6	8.7
4. Reserve Assets	67.8	68.8	67.1	68.2	68.5
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	40.0	40.3	39.8	40.4	40.2
2. Portfolio Investment	21.4	22.3	22.6	22.3	22.0
3. Other Investment	38.6	37.4	37.6	37.3	37.8

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	Sep-20 (R)	Dec-20 (PR)	Mar-21 (PR)	Jun-21 (PR)	Sep-21 (P)
Non-Debt Liabilities	50.8	52.4	52.4	52.7	52.2
Debt Liabilities	49.2	47.6	47.6	47.3	47.8
Total	100.0	100.0	100.0	100.0	100.0

^[1] IIP is compiled as per the ‘Balance of Payments and International Investment Position Manual (Sixth edition)’ (BPM6) of the IMF. From this quarter, IIP compilation has also been made consistent with the statistical framework provided by the IMF’s External Debt Statistics (EDS) Guide 2013, which has led to reclassification of some sub-components under liabilities, though the aggregate position remains unaltered. The revised quarterly time series data on IIP since June 2018 are provided in Statement.