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Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2021.
Key Features of India’s IIP in June 2021
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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).
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Reserve assets accounted for 95 per cent of the increase of US$ 35.9 billion in Indian residents’ overseas financial assets during the quarter.
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Foreign-owned assets in India recorded an increase of US$ 11.6 billion, corresponding to an equal rise in inward foreign direct investment.
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Variation in exchange rate of rupee vis-a-vis other currencies affected change in liabilities, when valued in US$ terms.
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Reserve assets continued to have the dominant share (68.3 per cent) in India’s international financial assets (Table 2).
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The share of non-debt liabilities in total international liabilities edged up to 52.7 per cent in June 2021 (Table 3).
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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 |
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