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Today, the Reserve Bank released data relating to India’s International Investment Position at end-December 2020.
Key Features of India’s IIP in December 2020
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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).
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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.
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Reserve assets accounted for over two-thirds of India’s international financial assets (Table 2).
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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).
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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 |
1India’s quarterly IIP is disseminated with a quarter lag. The IIP for end-September 2020 was placed in the public domain on December 30, 2020. |