Daily Email Newsletter (Sign-up Free)

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

Dec 31, 2018: Today, the Reserve Bank released data relating to India’s International Investment Position at end-September 2018.

Key Features of India’s IIP in September 2018

Net claims of non-residents on India declined by US$ 18.5 billion from their level a quarter ago (Table 1).

The decline in net claims was due to a sharper fall in foreign owned assets in India as compared with that in the Indian residents’ overseas financial assets.

Indian residents’ financial assets abroad declined by US$ 3.5 billion over the level in the previous quarter, mainly due to reduction in reserve assets, even as overseas direct investments increased.

Foreign-owned assets in India declined by US$ 22.0 billion, mainly due to reduction in foreign direct investment (FDI) and portfolio investment; trade credit, however, increased during the quarter.

Depreciation of the Indian rupee against the US dollar contributed to the decline in net claims of non-residents during the quarter.

Reserve assets accounted for two-thirds of India’s international financial assets (Table 2).

The share of debt liabilities in total liabilities increased marginally during the quarter (Table 3).

The ratio of India’s international financial assets to international financial liabilities stood at 60.7 per cent in September 2018 (59.8 per cent in June 2018).

India’s International Investment Position at end-September 2018

Note#1: India’s quarterly IIP is disseminated with a one- quarter lag. The IIP for end- June 2018 was placed in the public domain on September 28, 2018.


Source: RBI

No comments:

Post a Comment

In comment with "Name/Url" option, only Name is mandatory to be filled.