The Reserve Bank released data relating to India’s international investment position (IIP) as at end-December 2017.
Key Features of India’s IIP in December 2017
- Net claims of non-residents on India increased by US$ 26.3 billion over the previous quarter (Table 1).
- Foreign-owned assets in India surged by US$ 38.6 billion during the quarter, with broad-based contribution from foreign direct investment (FDI), portfolio investment, currency and deposits as well as trade credit; outstanding commercial loans, however, declined marginally during the quarter.
- Indian residents’ overseas assets increased by US$ 12.3 billion over the level in the previous quarter, a substantial portion of which came from increase in the reserve assets.
- Appreciation of Indian rupee against the US dollar (by 2.2 per cent) during the quarter partly explained the increase in India’s liabilities when valued in US dollar terms.
- While reserve assets accounted for over two-thirds of India’s international assets, debt and non-debt liabilities had an almost equal share in total liabilities (Table 2 and 3).
- The ratio of India’s international financial assets to international financial liabilities stood at 58.6 per cent at end-December 2017 (59.6 per cent a quarter ago).
| Table 1: Overall International Investment Position of India |
| (US $ billion) |
| Period |
Dec-16 (PR) |
Mar-17 (PR) |
Jun–17 (PR) |
Sep-17 (PR) |
Dec–17 (P) |
| Net IIP |
-361.6 |
-394.1 |
-406.2 |
-403.4 |
-429.7 |
| A. Assets |
543.4 |
564.2 |
576.7 |
595.3 |
607.6 |
| 1. Direct Investment |
144.1 |
148.2 |
151.3 |
153.6 |
155.3 |
| 2. Portfolio Investment |
2.3 |
2.6 |
2.1 |
2.5 |
2.6 |
| 2.1 Equity Securities |
2.3 |
1.6 |
2.0 |
2.4 |
2.3 |
| 2.2 Debt Securities |
0.0 |
1.0 |
0.1 |
0.1 |
0.3 |
| 3. Other Investment |
38.1 |
43.4 |
36.8 |
39.0 |
40.6 |
| 3.1 Trade Credits |
1.9 |
1.8 |
1.2 |
1.3 |
1.6 |
| 3.2 Loans |
4.2 |
7.3 |
5.1 |
5.9 |
5.5 |
| 3.3 Currency and Deposits |
14.9 |
20.1 |
16.1 |
17.2 |
18.8 |
| 3.4 Other Assets |
17.1 |
14.3 |
14.4 |
14.7 |
14.7 |
| 4. Reserve Assets |
358.9 |
370.0 |
386.5 |
400.2 |
409.1 |
| B. Liabilities |
905.0 |
958.3 |
982.9 |
998.7 |
1037.3 |
| 1. Direct Investment |
318.5 |
342.6 |
353.2 |
364.1 |
377.7 |
| 2. Portfolio Investment |
221.1 |
238.6 |
251.1 |
254.0 |
267.7 |
| 2.1 Equity Securities |
140.6 |
154.0 |
154.9 |
150.1 |
155.6 |
| 2.2 Debt securities |
80.5 |
84.6 |
96.2 |
103.9 |
112.1 |
| 3. Other Investment |
365.4 |
377.1 |
378.5 |
380.6 |
391.9 |
| 3.1 Trade Credits |
84.8 |
88.9 |
89.6 |
93.6 |
98.5 |
| 3.2 Loans |
160.1 |
159.6 |
158.4 |
156.9 |
156.1 |
| 3.3 Currency and Deposits |
110.0 |
117.1 |
118.5 |
118.3 |
123.5 |
| 3.4 Other Liabilities |
10.5 |
11.6 |
12.0 |
11.9 |
13.8 |
| Memo item: Assets to Liability Ratio (%) |
60.1 |
58.9 |
58.7 |
59.6 |
58.6 |
R: Revised PR: Partially revised P: Provisional;
Note: 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-16(PR) |
Mar-17(PR) |
June-17(PR) |
Sep-17(PR) |
Dec-17(P) |
| A. Assets |
|
|
|
|
|
| 1. Direct Investment |
26.5 |
26.3 |
26.2 |
25.8 |
25.6 |
| 2. Portfolio Investment |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
| 3. Other Investment |
7.0 |
7.7 |
6.4 |
6.6 |
6.7 |
| 4. Reserve Assets |
66.1 |
65.6 |
67.0 |
67.2 |
67.3 |
| Assets/Liabilities |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| B. Liabilities |
| 1. Direct Investment |
35.2 |
35.7 |
35.9 |
36.5 |
36.4 |
| 2. Portfolio Investment |
24.4 |
24.9 |
25.6 |
25.4 |
25.8 |
| 3. Other Investment |
40.4 |
39.4 |
38.5 |
38.1 |
37.8 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India |
| (per cent) |
| Period |
Dec-16(PR) |
Mar-17(PR) |
June-17(PR) |
Sep-17(PR) |
Dec-17(P) |
| Non-Debt Liabilities |
49.2 |
50.3 |
50.1 |
49.9 |
49.9 |
| Debt Liabilities |
50.8 |
49.7 |
49.9 |
50.1 |
50.1 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
Jose J. Kattoor
Chief General Manager
Source : RBI
