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

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ಪ್ರಕಟಿಸಲಾದ ದಿನಾಂಕ ಮಾರ್ಚ್ 28, 2018

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ಪಿಡಿಎಫ್ ( 183423 )

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

Today, the Reserve Bank released data relating to India’s international investment position (IIP) as at end-December 2017.

Key Features of India’s IIP in December 2017

Net claims of non-residents on India increased by US$ 26.3 billion over the previous quarter (Table 1).
Foreign-owned assets in India surged by US$ 38.6 billion during the quarter, with broad-based contribution from foreign direct investment (FDI), portfolio investment, currency and deposits as well as trade credit; outstanding commercial loans, however, declined marginally during the quarter.
Indian residents’ overseas assets increased by US$ 12.3 billion over the level in the previous quarter, a substantial portion of which came from increase in the reserve assets.
Appreciation of Indian rupee against the US dollar (by 2.2 per cent) during the quarter partly explained the increase in India’s liabilities when valued in US dollar terms.
While reserve assets accounted for over two-thirds of India’s international assets, debt and non-debt liabilities had an almost equal share in total liabilities (Table 2 and 3).
The ratio of India’s international financial assets to international financial liabilities stood at 58.6 per cent at end-December 2017 (59.6 per cent a quarter ago).

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Dec-16 (PR)	Mar-17 (PR)	Jun–17 (PR)	Sep-17 (PR)	Dec–17 (P)
Net IIP	-361.6	-394.1	-406.2	-403.4	-429.7
A. Assets	543.4	564.2	576.7	595.3	607.6
1. Direct Investment	144.1	148.2	151.3	153.6	155.3
2. Portfolio Investment	2.3	2.6	2.1	2.5	2.6
2.1 Equity Securities	2.3	1.6	2.0	2.4	2.3
2.2 Debt Securities	0.0	1.0	0.1	0.1	0.3
3. Other Investment	38.1	43.4	36.8	39.0	40.6
3.1 Trade Credits	1.9	1.8	1.2	1.3	1.6
3.2 Loans	4.2	7.3	5.1	5.9	5.5
3.3 Currency and Deposits	14.9	20.1	16.1	17.2	18.8
3.4 Other Assets	17.1	14.3	14.4	14.7	14.7
4. Reserve Assets	358.9	370.0	386.5	400.2	409.1
B. Liabilities	905.0	958.3	982.9	998.7	1037.3
1. Direct Investment	318.5	342.6	353.2	364.1	377.7
2. Portfolio Investment	221.1	238.6	251.1	254.0	267.7
2.1 Equity Securities	140.6	154.0	154.9	150.1	155.6
2.2 Debt securities	80.5	84.6	96.2	103.9	112.1
3. Other Investment	365.4	377.1	378.5	380.6	391.9
3.1 Trade Credits	84.8	88.9	89.6	93.6	98.5
3.2 Loans	160.1	159.6	158.4	156.9	156.1
3.3 Currency and Deposits	110.0	117.1	118.5	118.3	123.5
3.4 Other Liabilities	10.5	11.6	12.0	11.9	13.8
Memo item: Assets to Liability Ratio (%)	60.1	58.9	58.7	59.6	58.6
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	Dec-16(PR)	Mar-17(PR)	June-17(PR)	Sep-17(PR)	Dec-17(P)
A. Assets
1. Direct Investment	26.5	26.3	26.2	25.8	25.6
2. Portfolio Investment	0.4	0.4	0.4	0.4	0.4
3. Other Investment	7.0	7.7	6.4	6.6	6.7
4. Reserve Assets	66.1	65.6	67.0	67.2	67.3
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	35.2	35.7	35.9	36.5	36.4
2. Portfolio Investment	24.4	24.9	25.6	25.4	25.8
3. Other Investment	40.4	39.4	38.5	38.1	37.8

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

Jose J. Kattoor
Chief General Manager

Press Release: 2017-2018/2585

¹ India’s quarterly IIP is disseminated with a one- quarter lag. The IIP for end- September 2017 was placed in the public domain on December 29, 2017.