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International Investment Position (IIP) of India as at the end of June 2018

Sep 28, 2018: The Reserve Bank has released data relating to India’s International Investment Position at end-June 2018. The data in excel file can be downloaded from RBI site. India’s quarterly IIP is disseminated with a one-quarter lag. The IIP for end- March 2018 was placed in the public domain on June 29, 2018.

Key Features of India’s IIP in June 2018

o Net claims of non-residents on India declined by US$ 13.1 billion from their level at the end of the previous quarter.

o Indian residents’ overseas financial assets as well as foreign owned assets in India declined during the quarter, with the decline in the latter being larger (Table 1).

o Of the decline in Indian residents’ foreign assets, as much as 92.2 per cent occurred through reduction in reserve assets, which exceeded the increase in overseas direct during the quarter.

o The decline in foreign-owned assets in India was broad-based across foreign direct investment, portfolio investment, trade credit, commercial loans as well as currency and deposits.

o Large valuation effects associated with the depreciation of the Indian Rupee against the US dollar during the quarter impacted net claims of non-residents.

o Reserve assets accounted for two-thirds of India’s international financial assets (Table 2); debt and non-debt liabilities had almost equal share in total liabilities (Table 3).

o The ratio of India’s international financial assets to international financial liabilities stood at 60.1 per cent in June 2018 (59.2 per cent a year ago).

International Investment Position (IIP) of India as at the end of June 2018

Source: Reserve Bank of India (RBI)

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