India’s International Investment Position (IIP), September 2018

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ప్రచురించబడిన తేదీ డిసెంబర్ 31, 2018

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Key Features of India’s IIP in September 2018

Net claims of non-residents on India declined by US$ 18.5 billion from their level a quarter ago (Table 1).
The decline in net claims was due to a sharper fall in foreign owned assets in India as compared with that in the Indian residents’ overseas financial assets.
Indian residents’ financial assets abroad declined by US$ 3.5 billion over the level in the previous quarter, mainly due to reduction in reserve assets, even as overseas direct investments increased.
Foreign-owned assets in India declined by US$ 22.0 billion, mainly due to reduction in foreign direct investment (FDI) and portfolio investment; trade credit, however, increased during the quarter.
Depreciation of the Indian rupee against the US dollar contributed to the decline in net claims of non-residents during the quarter.
Reserve assets accounted for two-thirds of India’s international financial assets (Table 2).
The share of debt liabilities in total liabilities increased marginally during the quarter (Table 3).
The ratio of India’s international financial assets to international financial liabilities stood at 60.7 per cent in September 2018 (59.8 per cent in June 2018).

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1506

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Sep-17(R)	Dec-17(PR)	Mar-18(PR)	June-18(PR)	Sep-18(P)
Net IIP (A-B)	-397.5	-422.3	-419.9	-410.4	-391.9
A. Assets	600.9	613.1	632.8	609.5	606.0
1. Direct Investment	153.5	155.2	157.4	160.7	163.0
2. Portfolio Investment	2.5	2.6	2.7	1.7	0.9
2.1 Equity Securities	2.4	2.3	1.3	1.5	0.7
2.2 Debt Securities	0.1	0.3	1.4	0.2	0.2
3. Other Investment	44.7	46.3	48.2	41.3	41.5
3.1 Trade Credits	1.3	1.6	1.7	1.4	0.9
3.2 Loans	6.0	5.6	8.2	7.0	7.1
3.3 Currency & Deposits	19.2	20.8	20.8	16.3	16.6
3.4 Other Assets	18.3	18.4	17.5	16.7	16.9
4. Reserve Assets	400.2	409.1	424.5	405.7	400.5
B. Liabilities	998.3	1035.4	1052.7	1019.9	997.9
1. Direct Investment	363.9	377.3	379.0	372.4	362.2
2. Portfolio Investment	254.0	267.7	272.4	254.5	238.1
2.1 Equity Securities	150.1	155.7	155.1	144.4	135.2
2.2 Debt securities	103.9	112.0	117.3	110.1	102.9
3. Other Investment	380.4	390.4	401.3	393.0	397.6
3.1 Trade Credits	93.6	98.4	103.2	99.6	104.2
3.2 Loans	156.4	156.1	159.9	157.6	158.3
3.3 Currency & Deposits	118.3	123.5	126.5	124.5	122.1
3.4 Other Liabilities	12.2	12.4	11.7	11.3	13.0
Memo item: Assets to Liability Ratio (%)	60.2	59.2	60.1	59.8	60.7
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	Sep-17(R)	Dec-17(PR)	Mar-17(PR)	Jun-18(PR)	Sep-18(P)
A. Assets
1. Direct Investment	25.5	25.3	24.9	26.4	26.9
2. Portfolio Investment	0.4	0.4	0.4	0.3	0.1
3. Other Investment	7.4	7.6	7.6	6.8	6.9
4. Reserve Assets	66.6	66.7	67.1	66.6	66.1
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	36.5	36.4	36.0	36.5	36.3
2. Portfolio Investment	25.4	25.9	25.9	25.0	23.9
3. Other Investment	38.1	37.7	38.1	38.5	39.8

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	Sep-17(R)	Dec-17(PR)	Mar-17(PR)	Jun-18(PR)	Sep-18(P)
Non-Debt Liabilities	49.9	49.9	49.2	49.1	48.3
Debt Liabilities	50.1	50.1	50.8	50.9	51.7
Total	100.0	100.0	100.0	100.0	100.0