Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2022^[1].

Key Features of India’s IIP in end-September 2022

• Net claims of non-residents on India increased by US$ 34.3 billion during Q2:2022-23 and stood at US$ 389.6 billion in September 2022.

• Overseas financial assets of Indian residents declined by US$ (-)43.9 billion during July-September 2022 due to reduction in reserves assets, even as trade credit, currency and deposits, and overseas direct investment recorded increase; the reduction in non-residents’ financial assets in India was relatively lower [US$ (-)9.6 billion] (Table 1).

• Reserve assets remained the dominant component (62.9 per cent share) in India’s international financial assets; it had declined by US$ 56.5 billion during July-September 2022, where valuation losses accounted for a major part (Table 2).

• The fall in India’s foreign liabilities during Q2:2022-23 was attributed primarily to direct investment (net) outflows; portfolio and other investments also recorded marginal decline on a net basis, barring trade credit which increased by US$ 5.1 billion.

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

• Debt and non-debt liabilities continued to have equal share in total external liabilities (Table 3).

• The ratio of international assets to international liabilities moderated to 68.5 per cent in September 2022 from 71.5 per cent a quarter ago.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/1468

^[1] India’s quarterly IIP is disseminated with a lag of one quarter. The previous quarterly IIP (for end-June 2022) was released on the RBI website on September 30, 2022.