India’s International Investment Position (IIP), June 2020

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Published on September 30, 2020

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Key Features of India’s IIP in June 2020

Net claims of non-residents on India declined for the fourth consecutive quarter and stood at US$ 345.7 billion at end-June 2020 (Table 1).
The decline of US$ 29.7 billion in net claims during Q1:2020-21 was mainly due to an increase of US$ 27.9 billion in reserve assets.
Among the constituents of foreign-owned assets, loans, foreign direct investment (FDI) and currency and deposits increased, whereas portfolio investment declined during the quarter.
Reserve assets continued to have the dominant share in India’s international assets (Table 2).
The share of non-debt liabilities increased marginally during the quarter to 48.9 per cent as at end-June 2020 (Table 3).

(Yogesh Dayal)
Chief General Manager

Press Release: 2020-2021/415

Table 1: Overall International Investment Position of India
(US $ billion)
Period	June-19(R)	Sep-19(PR)	Dec-19(PR)	Mar-20 (PR)	June-20 (P)
Net IIP (A-B)	-451.6	-436.7	-425.1	-375.4	-345.7
A. Assets	662.2	669.5	697.9	717.0	747.9
1. Direct Investment	173.2	176.2	179.7	183.0	185.4
2. Portfolio Investment	5.0	4.5	4.8	3.8	4.3
2.1 Equity Securities	1.8	2.3	2.6	0.6	0.8
2.2 Debt Securities	3.2	2.2	2.2	3.2	3.5
3. Other Investment	54.1	55.0	53.4	52.4	52.5
3.1 Trade Credits	2.1	1.6	2.2	1.5	1.2
3.2 Loans	9.8	7.9	6.2	6.7	7.4
3.3 Currency and Deposits	24.2	27.6	27.1	26.0	27.8
3.4 Other Assets	18.1	17.9	17.9	18.2	16.1
4. Reserve Assets	429.8	433.7	459.9	477.8	505.7
B. Liabilities	1113.8	1106.2	1123.0	1092.4	1093.6
1. Direct Investment	417.6	417.1	426.9	418.2	419.3
2. Portfolio Investment	266.8	260.2	266.7	246.7	241.6
2.1 Equity Securities	151.2	144.0	148.9	134.8	139.0
2.2 Debt securities	115.6	116.2	117.8	111.9	102.6
3. Other Investment	429.3	428.9	429.3	427.5	432.7
3.1 Trade Credits	107.2	106.6	105.2	104.3	104.0
3.2 Loans	173.7	174.8	177.3	179.8	184.4
3.3 Currency and Deposits	133.8	133.1	133.3	130.8	132.9
3.4 Other Liabilities	14.5	14.4	13.5	12.6	11.4
Memo item: Assets to Liability Ratio (%)	59.5	60.5	62.1	65.6	68.4
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	June-19(R)	Sep-19(PR)	Dec-19(PR)	Mar-20 (PR)	June-20 (P)
A. Assets
1. Direct Investment	26.2	26.3	25.7	25.5	24.8
2. Portfolio Investment	0.8	0.7	0.7	0.5	0.6
3. Other Investment	8.1	8.2	7.7	7.4	7.0
4. Reserve Assets	64.9	64.8	65.9	66.6	67.6
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	37.5	37.7	38.0	38.3	38.3
2. Portfolio Investment	24.0	23.5	23.7	22.6	22.1
3. Other Investment	38.5	38.8	38.3	39.1	39.6

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	June-19(R)	Sep-19(PR)	Dec-19(PR)	Mar-20 (PR)	June-20 (P)
Non-Debt Liabilities	49.5	49.1	49.3	48.5	48.9
Debt Liabilities	50.5	50.9	50.7	51.5	51.1
Total	100.0	100.0	100.0	100.0	100.0