India’s International Investment Position (IIP), June 20171

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Published on September 29, 2017

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Key Features of India’s IIP in June 2017

Claims of non-residents on Indian residents at end-June 2017 were 70 per cent higher than the level of Indian residents’ foreign assets (including gold bullion held as reserve assets) (Table 1).
As a consequence, net IIP (the difference between the economy’s external financial assets and liabilities) deteriorated during April-June 2017.
Increase in reserve assets and overseas direct investment contributed to the increase in Indian residents’ financial assets abroad, offsetting a reduction in loans and currency and deposits during the quarter; reserve assets accounted for nearly two-third of India’s international financial assets (Table 2).
Portfolio investment in debt securities and direct investment inflows were major contributors to the increase in foreign-owned assets in India during the quarter.
Debt and non-debt liabilities had equal shares in total external liabilities of Indian residents (Table 3).
The ratio of India’s international financial assets to international financial liabilities stood at 58.7 per cent in June 2017 (61.3 per cent a year ago).

Jose J. Kattoor
Chief General Manager

Press Release: 2017-2018/885

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Mar-16 (PR)	Jun-16 (PR)	Sep-16 (PR)	Dec-16 (P)	Mar-17 (PR)	June-17 (P)
Net IIP	-359.2	-350.8	-366.8	-361.8	-394.5	-406.4
A. Assets	552.1	554.5	567.3	543.4	564.2	576.9
1. Direct Investment	141.6	143.6	140.6	144.1	148.2	151.2
2.Portfolio Investment	2.5	1.6	2.3	2.3	2.6	2.1
2.1 Equity Securities	1.6	1.6	2.0	2.3	1.6	2.0
2.2 Debt Securities	0.9	0.0	0.3	0.0	1.0	0.1
3. Other Investment	47.8	45.8	52.4	38.1	43.4	37.1
3.1 Trade Credits	2.9	2.4	2.2	1.9	1.8	1.6
3.2 Loans	6.7	4.7	6.3	4.2	7.3	5.2
3.3 Currency & Deposits	21.1	21.6	26.8	14.9	20.1	16.1
3.4 Other Assets	17.1	17.1	17.1	17.1	14.2	14.2
4. Reserve Assets	360.2	363.5	372.0	358.9	370.0	386.5
B. Liabilities	911.3	905.3	934.1	905.2	958.7	983.3
1. Direct Investment	293.9	294.1	311.7	318.5	342.7	353.4
2. Portfolio Investment	224.8	220.5	232.1	221.1	238.6	251.1
2.1 Equity Securities	141.9	141.5	148.1	140.6	154.0	154.9
2.2 Debt securities	82.9	79.0	84.0	80.5	84.6	96.2
3. Other Investment	392.6	390.7	390.3	365.6	377.4	378.8
3.1 Trade Credits	82.3	82.1	82.0	84.8	88.9	89.6
3.2 Loans	170.4	170.3	167.0	160.3	159.9	158.7
3.3 Currency & Deposits	127.1	126.5	130.2	110.0	117.1	118.5
3.4 Other Liabilities	12.8	11.8	11.1	10.5	11.5	12.0
Memo item: Assets to Liability Ratio (%)	60.6	61.3	60.7	60.0	58.9	58.7
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	Mar-16 (PR)	Jun-16 (PR)	Sep-16 (PR)	Dec-16 (P)	Mar-17 (PR)	June-17 (P)
A. Assets
1. Direct Investment	25.6	25.9	24.8	26.5	26.3	26.2
2. Portfolio Investment	0.5	0.3	0.4	0.4	0.5	0.4
3. Other Investment	8.7	8.2	9.2	7.0	7.7	6.4
4. Reserve Assets	65.2	65.6	65.6	66.1	65.5	67.0
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	32.2	32.5	33.4	35.2	35.8	36.0
2. Portfolio Investment	24.7	24.4	24.9	24.4	24.9	25.5
3. Other Investment	43.1	43.1	41.8	40.4	39.4	38.5

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	Mar-16 (PR)	Jun-16 (PR)	Sep-16 (PR)	Dec-16 (P)	Mar-17 (PR)	June-17 (P)
Non-Debt Liabilities	46.3	46.6	47.7	49.2	50.3	50.1
Debt Liabilities	53.7	53.4	52.3	50.8	49.7	49.9
Total	100.0	100.0	100.0	100.0	100.0	100.0