Indian Economy

International Investment Position of India-June 2020

Date: Sep 30, 2020

India’s International Investment Position (IIP), June 2020

Today, the Reserve Bank released data relating to India’s International Investment Position at end-June 2020.

Key Features of India’s IIP in June 2020

Net claims of non-residents on India declined for the fourth consecutive quarter and stood at US$ 345.7 billion at end-June 2020 (Table 1).

The decline of US$ 29.7 billion in net claims during Q1:2020-21 was mainly due to an increase of US$ 27.9 billion in reserve assets.

Among the constituents of foreign-owned assets, loans, foreign direct investment (FDI) and currency and deposits increased, whereas portfolio investment declined during the quarter.

Reserve assets continued to have the dominant share in India’s international assets (Table 2).

The share of non-debt liabilities increased marginally during the quarter to 48.9 per cent as at end-June 2020 (Table 3).

(Yogesh Dayal)
Chief General Manager

Press Release: 2020-2021/415

Table 1: Overall International Investment Position of India
(US $ billion)
Period June-19(R) Sep-19(PR) Dec-19(PR) Mar-20 (PR) June-20 (P)
Net IIP (A-B) -451.6 -436.7 -425.1 -375.4 -345.7
A. Assets 662.2 669.5 697.9 717.0 747.9
1. Direct Investment 173.2 176.2 179.7 183.0 185.4
2. Portfolio Investment 5.0 4.5 4.8 3.8 4.3
2.1 Equity Securities 1.8 2.3 2.6 0.6 0.8
2.2 Debt Securities 3.2 2.2 2.2 3.2 3.5
3. Other Investment 54.1 55.0 53.4 52.4 52.5
3.1 Trade Credits 2.1 1.6 2.2 1.5 1.2
3.2 Loans 9.8 7.9 6.2 6.7 7.4
3.3 Currency and Deposits 24.2 27.6 27.1 26.0 27.8
3.4 Other Assets 18.1 17.9 17.9 18.2 16.1
4. Reserve Assets 429.8 433.7 459.9 477.8 505.7
B. Liabilities 1113.8 1106.2 1123.0 1092.4 1093.6
1. Direct Investment 417.6 417.1 426.9 418.2 419.3
2. Portfolio Investment 266.8 260.2 266.7 246.7 241.6
2.1 Equity Securities 151.2 144.0 148.9 134.8 139.0
2.2 Debt securities 115.6 116.2 117.8 111.9 102.6
3. Other Investment 429.3 428.9 429.3 427.5 432.7
3.1 Trade Credits 107.2 106.6 105.2 104.3 104.0
3.2 Loans 173.7 174.8 177.3 179.8 184.4
3.3 Currency and Deposits 133.8 133.1 133.3 130.8 132.9
3.4 Other Liabilities 14.5 14.4 13.5 12.6 11.4
Memo item: Assets to Liability Ratio (%) 59.5 60.5 62.1 65.6 68.4
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-19(R) Sep-19(PR) Dec-19(PR) Mar-20 (PR) June-20 (P)
A. Assets
     1. Direct Investment 26.2 26.3 25.7 25.5 24.8
     2. Portfolio Investment 0.8 0.7 0.7 0.5 0.6
     3. Other Investment 8.1 8.2 7.7 7.4 7.0
     4. Reserve Assets 64.9 64.8 65.9 66.6 67.6
    Assets/Liabilities 100.0 100.0 100.0 100.0 100.0
B. Liabilities
     1. Direct Investment 37.5 37.7 38.0 38.3 38.3
     2. Portfolio Investment 24.0 23.5 23.7 22.6 22.1
     3. Other Investment 38.5 38.8 38.3 39.1 39.6
Table 3: Share of External Debt and Non-Debt Liabilities of India
(per cent)
Period June-19(R) Sep-19(PR) Dec-19(PR) Mar-20 (PR) June-20 (P)
 Non-Debt Liabilities 49.5 49.1 49.3 48.5 48.9
 Debt Liabilities 50.5 50.9 50.7 51.5 51.1
Total 100.0 100.0 100.0 100.0 100.0

1India’s quarterly IIP is disseminated with a quarter lag. The IIP for end-March 2020 was placed in the public domain on June 30, 2020.

Categories: Indian Economy

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