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

Mar 29, 2019: The Reserve Bank has released the data relating to India’s International Investment Position at end-December 2018.

Key Features of India’s IIP in December 2018 :—

‣ Net claims of non-residents on India increased by US$ 44.3 billion from their level a quarter ago (Table 1).

‣ The increase in net claims was due to a pick-up in foreign-owned assets in India after three consecutive quarters of contraction, combined with a marginal decline in Indian residents’ financial assets abroad.

‣ The large increase in foreign-owned assets in India emanated from inward foreign direct investment (FDI), followed by portfolio investment and currency and deposits.

‣ Overseas financial assets of Indian residents declined during the quarter, mainly due to reduction in reserve assets, even as overseas direct investment increased during the period.

‣ Appreciation of the Indian rupee against the US dollar during the quarter contributed substantially to the increase in net claims of non-residents valued in US dollar terms.

‣ Despite a decline during the quarter, reserve assets accounted for nearly two-thirds of India’s international financial assets (Table 2).

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

‣ The ratio of India’s international financial assets to international financial liabilities stood at 58.3 per cent in December 2018 (61.1 per cent in September 2018).


Table 1: Overall International Investment Position of India
India’s International Investment Position (IIP), December 2018


Table 2: Composition of International Financial Assets and Liabilities of India
India’s International Investment Position (IIP), December 2018


Table 3: Share of External Debt and Non-Debt Liabilities of India
India’s International Investment Position (IIP), December 2018



Note: India’s quarterly IIP is disseminated with one-quarter lag. The IIP for end-September 2018 was placed in the public domain on December 31, 2018.

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