India’s International Investment Position (IIP), December 2020

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Published on March 31, 2021

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Key Features of India’s IIP in December 2020

Net claims of non-residents on India increased by US$ 3.1 billion from their level at the end of the previous quarter (Table 1).
Higher increase in foreign-owned assets in India (US$ 52.3 billion) vis-à-vis Indian residents’ overseas financial assets (US$ 49.2 billion) resulted in the rise in India’s net foreign liabilities during the quarter.
Reserve assets accounted for over two-thirds of India’s international financial assets (Table 2).
Foreign direct investment (FDI) and portfolio equity investment dominated the rise in India’s foreign liabilities; the share of non-debt liabilities in total external liabilities increased to 52.4 per cent (50.8 per cent at end-September 2020) (Table 3).
The ratio of India’s international financial assets to international financial liabilities improved to 71.4 per cent in December 2020 from 62.1 per cent a year ago.

(Yogesh Dayal)
Chief General Manager

Press Release: 2020-2021/1332

Table 1: Overall International Investment Position of India
(US $ billion)
Period	Dec-19(R)	Mar-20 (PR)	June-20 (PR)	Sep-20 (PR)	Dec-20 (P)
Net IIP (A-B)	-425.1	-375.2	-343.8	-337.5	-340.6
A. Assets	697.9	717.0	749.6	802.9	852.1
1. Direct Investment	179.7	183.0	185.9	188.3	191.3
2. Portfolio Investment	4.8	3.8	4.3	5.0	5.5
2.1 Equity Securities	2.6	0.6	0.8	1.9	1.7
2.2 Debt Securities	2.2	3.2	3.5	3.1	3.8
3. Other Investment	53.4	52.4	53.7	64.9	69.5
3.1 Trade Credits	2.2	1.5	1.3	2.9	3.3
3.2 Loans	6.2	6.7	7.4	9.0	10.6
3.3 Currency and Deposits	27.1	26.0	27.7	34.9	37.3
3.4 Other Assets	17.9	18.2	17.2	18.1	18.3
4. Reserve Assets	459.9	477.8	505.7	544.7	585.8
B. Liabilities	1123.0	1092.2	1093.4	1140.4	1192.7
1. Direct Investment	426.9	418.2	419.4	456.0	480.3
2. Portfolio Investment	266.7	246.7	241.6	253.3	274.1
2.1 Equity Securities	148.9	134.8	139.0	149.1	170.7
2.2 Debt securities	117.8	111.9	102.6	104.2	103.4
3. Other Investment	429.3	427.2	432.5	431.1	438.3
3.1 Trade Credits	105.2	104.3	104.0	102.2	102.6
3.2 Loans	177.3	179.6	184.5	180.6	183.5
3.3 Currency and Deposits	133.3	130.8	132.9	137.5	140.7
3.4 Other Liabilities	13.5	12.6	11.0	10.8	11.5
Memo item: Assets to Liability Ratio (%)	62.1	65.7	68.6	70.4	71.4
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-19 (R)	Mar-20 (PR)	June-20 (PR)	Sep-20 (PR)	Dec-20 (P)
A. Assets
1. Direct Investment	25.7	25.5	24.8	23.5	22.5
2. Portfolio Investment	0.7	0.5	0.6	0.6	0.6
3. Other Investment	7.7	7.4	7.1	8.1	8.2
4. Reserve Assets	65.9	66.6	67.5	67.8	68.7
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	38.0	38.3	38.4	40.0	40.3
2. Portfolio Investment	23.7	22.6	22.1	22.2	23.0
3. Other Investment	38.3	39.1	39.5	37.8	36.7

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	Dec-19 (R)	Mar-20 (PR)	June-20 (PR)	Sep-20 (PR)	Dec-20 (P)
Non-Debt Liabilities	49.3	48.5	48.9	50.8	52.4
Debt Liabilities	50.7	51.5	51.1	49.2	47.6
Total	100.0	100.0	100.0	100.0	100.0