Skip to main content

Daily Email Newsletter (Sign-up Free)

India’s International Investment Position (IIP), March 2018

Jun 29, 2018: The Reserve Bank released data relating to India’s International Investment Position as at end-March 2018. India’s quarterly IIP is disseminated with a one-quarter lag. The IIP for end- December 2018 was placed in the public domain on March 28, 2018

Key Features of India’s IIP in March 2018

I. Quarterly Variations

Net claims of non-residents on India declined by US$ 1.8 billion during the quarter (Table 1).

Indian residents’ overseas financial assets increased by US$ 19.6 billion, a substantial portion of which came from increase in reserve assets.

Foreign-owned assets in India increased by US$ 17.8 billion with broad-based contribution from portfolio debt securities, trade credit, commercial loans, foreign direct investment and currency and deposits.

Reserve assets accounted for over two-thirds of India’s international financial assets; overseas direct investment was the second largest category of assets (Table 3).

Debt and non-debt liabilities had nearly equal share in total liabilities to non-residents (Table 4).

The ratio of India’s international financial assets to international financial liabilities stood at 60.1 per cent in March 2018 (59.2 per cent in December 2017).

II. Annual Variations

There was an increase of US$ 31.8 billion in net claims of non-residents on India during 2017-18, as the increase in foreign owned assets in India (US$ 94.7 billion) exceeded the increase in Indian residents’ overseas financial assets (US$ 62.9 billion).

The major portion of the increase in India’s international financial assets came from reserve assets.

Direct investment, portfolio debt investment, trade credit, and, currency and deposits contributed to the higher increase in liabilities to non-residents.

III. Ratio of International Financial Assets and Liabilities to GDP

o The ratio of total international financial assets to Gross Domestic Product (GDP) at current prices, increased marginally to 24.5 per cent in March 2018 from 24.2 per cent a year ago (Table 2). The ratio of reserve assets to GDP increased to 16.5 per cent in March 2018 from 15.7 per cent a year ago.

The ratio of total international financial liabilities to GDP stood at 40.8 in March 2018, nearly same as a year ago.

The ratio of net IIP to GDP was (-) 16.3 per cent in March 2018.

India’s International Investment Position (IIP), March 2018

India’s International Investment Position (IIP), March 2018

India’s International Investment Position (IIP), March 2018

India’s International Investment Position (IIP), March 2018

Source: Reserve Bank of India (RBI)

Comments