International Investment Position (InIP) of India as at the end of September 2006 - ਆਰਬੀਆਈ - Reserve Bank of India
International Investment Position (InIP) of India as at the end of September 2006
The International Investment Position (InIP), compiled at the end of a specific period such as end-March, is the statement of the stock of external financial assets and liabilities of a country. The financial assets consist of the country's financial claims on non-residents and financial liabilities consist of the country's financial liabilities to non-residents. These transactions are classified according to institutional resident sectors, namely, monetary authority, government, banks, and other sectors (includes corporate sector). The net international investment position (the stock of external assets less the stock of external liabilities) shows the difference between what an economy owns in relation to what it owes. 2. Reserve assets remained the most dominant component of the external assets. However, it has registered a much lower growth (of US$ 2.39 billion) at the end-September 2006 over end-June 2006 as compared to growth of US$ 11.29 billion at end-June2006 over end-March 2006. Direct Investment abroad increased by around US$ 0.81 billion as at the end-September 2006 over end-June 2006. Table I. Overall International Investment Position
Note- PR: Partially revised; P: Provisional; [figures in the Table have been compiled based on InIP estimates in terms of US $ Million] 1. Total reserve assets as at end-September 2006 exceeded the entire external debt (US $ 136.5 billion at the same reference period) by around US$ 28.8 billion.II. Composition of External Assets and Liabilities 1. The major part of country's external assets is in the form of reserve assets (Table II). The share of reserve assets in total external assets of the country had marginally decreased from 84.9 per cent as at end-June 2006 to 82.7 per cent as at end-September 2006. It remained between 82 per cent to 85 per cent during the period under review.2. As at end-September 2006, around 7.8 per cent of the country's external assets were in the form of Direct & Portfolio Investments. Also, around 9.5 per cent of total external assets were attributed to Other Investment. 3. Around 50.3 per cent of the country's external liabilities were in the nature of other investments, i.e. trade credit, loans, currency & deposits and other liabilities, as at end-September 2006. In the total external liabilities of the country, loan and 'currency & deposits' were having 29.4 per cent and 15.3 per cent share, respectively whereas the trade credit had accounted for around 5 per cent share. Table II. Composition of External Assets and Liabilities
Note- PR: Partially revised; P: Provisional [figures in the Table have been compiled based on InIP estimates in terms of US $ Million] III. External Debt Liabilities vis-à-vis External Non-Debt Liabilities The share of non-debt liabilities to total external liabilities was placed at 44.63 per cent as at end-September 2006 and it remained in between 41 per cent to 46 per cent of total external liabilities during the period under review (Table III). Table III. Share of External Debt and non-Debt Liabilities
Note- PR: Partially revised; P: Provisional [figures in the Table have been compiled based on InIP estimates in terms of US $ Million] P.V.Sadanandan Press Release : 2006-2007/1290 |