India’s International Investment Position (IIP), December 2019

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प्रकाशित तारीख मार्च 31, 2020

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Key Features of India’s IIP in December 2019

Net claims of non-residents on India declined by US$ 10.4 billion to US $ 426.5 billion during the quarter ended December 2019 (Table 1).
The decline in net claims resulted from higher increase of US$ 28.3 billion in Indian residents’ overseas financial assets during the quarter in comparison with a rise of US$ 17.9 billion in foreign owned assets in India.
Increase in reserve assets (US $ 26.2 billion) was the dominant contributor to higher increase in Indian residents’ overseas financial assets, followed by overseas direct investments (US $ 3.3 billion).
Direct investments and portfolio investments liabilities increased by US $ 9.8 billion and US $ 6.7 billion, respectively, during the quarter.
Depreciation of the Indian rupee against the US dollar during the period contributed to the reduction in India’s liabilities, when valued in US dollar terms.
Reserve assets accounted for nearly 65 per cent of total foreign assets (Table 2).
During the quarter, the share of debt liabilities in total liabilities remained around its level a quarter ago (Table 3).
The ratio of India’s international financial assets to international financial liabilities improved to 62.1 per cent at end-December 2019 (60.5 per cent in September 2019).

Ajit Prasad
Director

Press Release: 2019-2020/2160

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Dec-18(R)	Mar-19(PR)	Jun-19(PR)	Sep-19(PR)	Dec-19(P)
Net IIP (A-B)	-426.8	-436.5	-451.5	-436.9	-426.5
A. Assets	606.4	642.1	662.3	669.1	697.4
1. Direct Investment	166.6	170.0	173.0	175.4	178.7
2. Portfolio Investment	2.7	4.7	5.0	4.5	4.8
2.1 Equity Securities	1.4	0.6	1.8	2.3	2.6
2.2 Debt Securities	1.3	4.1	3.2	2.2	2.2
3. Other Investment	41.6	54.5	54.5	55.4	54.0
3.1 Trade Credits	0.3	0.9	2.1	1.7	2.3
3.2 Loans	6.6	9.9	9.8	7.9	6.2
3.3 Currency and Deposits	17.2	25.2	24.2	27.6	27.1
3.4 Other Assets	17.5	18.6	18.4	18.2	18.4
4. Reserve Assets	395.6	412.9	429.8	433.7	459.9
B. Liabilities	1,033.2	1,078.6	1,113.8	1,106.0	1,123.9
1. Direct Investment	386.2	399.2	417.6	417.1	426.9
2. Portfolio Investment	245.8	260.3	266.8	260.0	266.7
2.1 Equity Securities	138.0	147.5	151.1	144.0	148.9
2.2 Debt securities	107.8	112.8	115.7	116.0	117.8
3. Other Investment	401.2	419.1	429.3	428.9	430.3
3.1 Trade Credits	103.7	105.2	107.2	106.6	105.2
3.2 Loans	160.3	167.9	173.7	174.8	177.3
3.3 Currency and Deposits	126.0	130.6	133.8	133.1	133.3
3.4 Other Liabilities	11.2	15.3	14.5	14.4	14.5
Memo item: Assets to Liability Ratio (%)	58.7	59.5	59.5	60.5	62.1
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	Dec-18(R)	Mar-19(PR)	Jun-19(PR)	Sep-19(PR)	Dec-19(P)
A. Assets
1. Direct Investment	26.9	27.5	26.5	26.1	26.2
2. Portfolio Investment	0.4	0.4	0.7	0.8	0.7
3. Other Investment	6.8	6.9	8.5	8.2	8.3
4. Reserve Assets	65.9	65.2	64.3	64.9	64.8
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	36.4	37.4	37	37.5	37.7
2. Portfolio Investment	23.9	23.8	24.1	24	23.5
3. Other Investment	39.7	38.8	38.9	38.5	38.8

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	Dec-18(R)	Mar-19(PR)	Jun-19(PR)	Sep-19(PR)	Dec-19(P)
Non-Debt Liabilities	49.1	49.1	49.5	49.1	49.2
Debt Liabilities	50.9	50.9	50.5	50.9	50.8
Total	100.0	100.0	100.0	100.0	100.0