India’s International Investment Position (IIP), June 2021

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Published on September 30, 2021

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Key Features of India’s IIP in June 2021

Net claims of non-residents on India declined by US$ 24.3 billion during April-June 2021 to US$ 327.0 billion as at end-June 2021 (Table 1).
Reserve assets accounted for 95 per cent of the increase of US$ 35.9 billion in Indian residents’ overseas financial assets during the quarter.
Foreign-owned assets in India recorded an increase of US$ 11.6 billion, corresponding to an equal rise in inward foreign direct investment.
Variation in exchange rate of rupee vis-a-vis other currencies affected change in liabilities, when valued in US$ terms.
Reserve assets continued to have the dominant share (68.3 per cent) in India’s international financial assets (Table 2).
The share of non-debt liabilities in total international liabilities edged up to 52.7 per cent in June 2021 (Table 3).
The ratio of international assets to international liabilities has gradually improved to 73.2 per cent in June 2021 from 68.5 per cent a year ago.

(Yogesh Dayal)
Chief General Manager

Press Release: 2021-2022/963

Table 1: Overall International Investment Position of India
(US $ billion)
Period	June-20 (R)	Sep-20 (PR)	Dec-20 (PR)	Mar-21 (PR)	June-21 (P)
Net IIP (A-B)	-344.8	-337.7	-340.7	-351.3	-327.0
A. Assets	749.0	802.8	852.3	859.3	895.2
1. Direct Investment	185.6	188.3	190.9	193.9	199.2
1.1 Equity and investment fund shares	120.3	121.3	122.5	122.7	125.3
1.2 Debt instruments	65.3	67.0	68.4	71.2	73.9
2. Portfolio Investment	4.3	5.0	6.3	7.9	7.9
2.1 Equity and investment fund shares	0.8	1.9	2.5	2.3	3.1
2.2 Debt Securities	3.5	3.1	3.8	5.6	4.8
3. Other Investment	53.4	64.8	69.3	80.5	77.0
3.1 Trade Credits	1.1	2.8	3.2	5.6	7.9
3.2 Loans	7.4	9.0	10.6	13.3	13.7
3.3 Currency and Deposits	27.7	34.9	37.3	42.4	35.9
3.4 Other Assets	17.2	18.1	18.2	19.2	19.5
4. Reserve Assets	505.7	544.7	585.8	577.0	611.1
B. Liabilities	1,093.8	1,140.5	1,193.0	1,210.6	1,222.2
1. Direct Investment	419.4	455.9	480.2	482.1	493.7
1.1 Equity and investment fund shares	395.8	430.7	454.6	456.9	468.0
1.2 Debt instruments	23.6	25.2	25.6	25.2	25.7
2. Portfolio Investment	241.7	253.3	274.0	282.0	281.3
2.1 Equity and investment fund shares	139.0	149.1	170.6	177.3	176.2
2.2 Debt securities	102.7	104.2	103.4	104.7	105.1
3. Other Investment	432.7	431.3	438.8	446.5	447.2
3.1 Trade Credits	104.0	102.2	102.6	100.3	102.2
3.2 Loans	184.8	180.8	184.0	190.0	189.5
3.3 Currency and Deposits	132.9	137.5	140.7	142.1	141.9
3.4 Other Liabilities	11.0	10.8	11.5	14.1	13.6
Memo item: Assets to Liability Ratio (%)	68.5	70.4	71.4	71.0	73.2
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	June-20 (R)	Sep-20 (PR)	Dec-20 (PR)	Mar-21 (PR)	June-21 (P)
A. Assets
1. Direct Investment	24.8	23.4	22.4	22.6	22.3
2. Portfolio Investment	0.6	0.6	0.7	0.9	0.9
3. Other Investment	7.1	8.1	8.2	9.4	8.5
4. Reserve Assets	67.5	67.9	68.7	67.1	68.3
Assets/Liabilities	100.0	100.0	100.0	100.0	100.0
B. Liabilities
1. Direct Investment	38.3	40.0	40.2	39.8	40.4
2. Portfolio Investment	22.1	22.2	23.0	23.3	23.0
3. Other Investment	39.6	37.8	36.8	36.9	36.6

Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period	June-20 (R)	Sep-20 (PR)	Dec-20 (PR)	Mar-21 (PR)	June-21 (P)
Non-Debt Liabilities	48.9	50.8	52.4	52.4	52.7
Debt Liabilities	51.1	49.2	47.6	47.6	47.3
Total	100.0	100.0	100.0	100.0	100.0