Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2022[¹].

Key Features of India’s IIP in end-June 2022

1. Net claims of non-residents on India inched up marginally by US$ 0.7 billion during Q1:2022-23 to US$ 359.5 billion in June 2022.

2. During April-June 2022, Indian residents’ overseas financial assets fell by US$ (-)28.9 billion, which was close to the drop of US$ (-)28.2 billion in foreign-owned financial assets in India (Table 1).

3. The decline in Indian residents’ foreign assets during the quarter was mainly due to the reduction in reserve assets, loans as well as currency and deposits.

4. Around 85 per cent of the fall in India’s foreign liabilities during Q1:2022-23 was attributed to portfolio investment (net) outflows.

5. Reserve assets accounted for around two thirds of India’s international financial assets (Table 2).

6. Variation in the exchange rate of rupee vis-a-vis other currencies had a significant impact on the change in liabilities, when valued in US$ terms.

7. The share of debt liabilities in total external liabilities increased to 50.0 per cent as at end-June 2022 from 47.5 per cent a year ago (Table 3).

8. India’s international financial assets covered 71.3 per cent of international financial liabilities as at end-June 2022.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/973

^[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-March 2022 was released in the RBI website on June 30, 2022.