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

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Published on December 29, 2017

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

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

¹ India’s quarterly IIP is being disseminated with one quarter lag and the previous quarterly IIP as at end-June 2017 was placed in the public domain on September 29, 2017.