Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2023^[1].

Key Features of India’s IIP in end-June 2023:

1. Net claims of non-residents on India increased by US$ 12.1 billion during Q1:2023-24 and stood at US$ 379.7 billion as at end-June 2023.

2. The rise in net claims of non-residents during the quarter was on account of higher rise in foreign-owned financial assets in India (US$ 36.2 billion) when compared with Indian residents’ overseas financial assets (US$ 24.1 billion) (Table 1).

3. Increase in reserve assets (US$ 16.6 billion) was the largest contributor to the rise in Indian residents’ foreign assets during April-June 2023, followed by direct investment, loans and trade credit.

4. Inward portfolio investment (US$ 15.0 billion) and foreign direct investment (US$ 8.9 billion) together accounted for two thirds of the rise in foreign liabilities of Indian residents.

5. Reserve assets accounted for 64.2 per cent of India’s international financial assets at end-June 2023 (Tables 1 and 2).

6. Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms.

7. The ratio of India’s international assets to international liabilities moderated to 70.9 per cent in June 2023 from 71.1 per cent a quarter ago and 71.5 per cent a year ago.

8. Debt and non-debt liabilities accounted for nearly equal share in total external liabilities during the quarter (Table 3).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1011

^[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-March 2023 was released in the RBI website on June 30, 2023.