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Today, the Reserve Bank released data relating to India’s International Investment Position for end-December 2024[1].
Key Features of IIP in end-December 2024:
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Net claims of non-residents on India increased by US$ 11 billion during Q3:2024-25 and stood at US$ 364.5 billion in December 2024.
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Foreign assets of Indian residents declined by US$ 40.1 billion and the claims of non-residents’ in India also declined by US$ 29.1 billion, resulting in increase in the India net foreign liabilities (Table 1).
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The decline in Indian residents’ foreign assets during October-December 2024 was mainly on account of the decrease of US$ 70.1 billion in reserve assets.
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Reserve assets, however, recorded an increase of US$ 13.2 billion over December 2023.
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The fall in India’s foreign liabilities was due to the decline in inward direct and portfolio investments during the quarter, though trade credit, loans and currency & deposits recorded an increase.
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Reserve assets accounted for 59.0 per cent of India’s total international financial assets in December 2024 (Table 2).
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Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms.
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The ratio of India’s international assets to international liabilities improved to 74.7 per cent in December 2024 from 73.1 per cent a year ago.
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The share of debt liabilities in total external liabilities increased to 53.6 per cent in December 2024 from 52.9 per cent a quarter ago and 51.2 per cent a year ago (Table 3).
(Puneet Pancholy)
Chief General Manager
Press Release: 2024-2025/2508
| Table 1: Overall International Investment Position of India |
| (US$ billion) |
| Period |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (P) |
| Net IIP (A-B) |
-368.1 |
-361.2 |
-367.2 |
-353.5 |
-364.5 |
| A. Assets |
999.0 |
1,033.8 |
1,051.7 |
1,118.8 |
1,078.7 |
| 1. Direct Investment |
236.5 |
242.3 |
246.4 |
253.8 |
260.2 |
| 1.1 Equity and investment fund shares |
149.4 |
153.4 |
156.4 |
161.8 |
165.7 |
| 1.2 Debt instruments |
87.1 |
88.9 |
90.0 |
92.0 |
94.5 |
| 2. Portfolio Investment |
11.7 |
12.4 |
12.4 |
12.5 |
12.2 |
| 2.1 Equity and investment fund shares |
9.5 |
10.9 |
10.7 |
11.2 |
9.4 |
| 2.2 Debt securities |
2.2 |
1.5 |
1.7 |
1.3 |
2.8 |
| 3. Other Investment |
128.3 |
132.7 |
140.9 |
146.7 |
170.6 |
| 3.1 Trade Credits |
31.7 |
33.5 |
32.9 |
33.0 |
33.3 |
| 3.2 Loans |
18.5 |
17.6 |
20.8 |
22.1 |
22.5 |
| 3.3 Currency and Deposits |
44.3 |
53.5 |
57.7 |
56.1 |
68.7 |
| 3.4 Other Assets |
33.8 |
28.1 |
29.5 |
35.5 |
46.1 |
| 4. Reserve Assets |
622.5 |
646.4 |
652.0 |
705.8 |
635.7 |
| B. Liabilities |
1,367.1 |
1,395.0 |
1,418.9 |
1,472.3 |
1,443.2 |
| 1. Direct Investment |
536.9 |
542.9 |
553.0 |
555.7 |
547.6 |
| 1.1 Equity and investment fund shares |
505.6 |
511.1 |
520.8 |
523.2 |
513.6 |
| 1.2 Debt instruments |
31.3 |
31.8 |
32.2 |
32.5 |
34.0 |
| 2. Portfolio Investment |
268.7 |
276.8 |
276.9 |
293.8 |
276.0 |
| 2.1 Equity and investment fund shares |
161.2 |
162.1 |
160.9 |
170.9 |
155.6 |
| 2.2 Debt securities |
107.5 |
114.7 |
116.0 |
122.9 |
120.4 |
| 3. Other Investment |
561.5 |
575.3 |
589.0 |
622.8 |
619.6 |
| 3.1 Trade Credits |
123.3 |
123.7 |
125.9 |
130.9 |
135.1 |
| 3.2 Loans |
215.0 |
221.9 |
224.9 |
239.8 |
241.0 |
| 3.3 Currency and Deposits |
149.3 |
154.8 |
160.6 |
164.1 |
165.7 |
| 3.4 Other Liabilities |
73.9 |
74.9 |
77.6 |
88.0 |
77.8 |
| of which: |
|
|
|
|
|
| Special drawing rights (Net incurrence of liabilities) |
22.2 |
21.9 |
21.8 |
22.4 |
21.6 |
| Memo Item: Assets to Liability ratio (%) |
73.1 |
74.1 |
74.1 |
76.0 |
74.7 |
Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised.
2. 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 |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (P) |
| A. Assets |
| 1. Direct Investment |
23.7 |
23.5 |
23.4 |
22.7 |
24.1 |
| 2. Portfolio Investment |
1.2 |
1.2 |
1.2 |
1.1 |
1.1 |
| 3. Other Investment |
12.8 |
12.8 |
13.4 |
13.1 |
15.8 |
| 4. Reserve Assets |
62.3 |
62.5 |
62.0 |
63.1 |
59.0 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| B. Liabilities |
| 1. Direct Investment |
39.3 |
38.9 |
39.0 |
37.7 |
38.0 |
| 2. Portfolio Investment |
19.7 |
19.8 |
19.5 |
20.0 |
19.1 |
| 3. Other Investment |
41.0 |
41.3 |
41.5 |
42.3 |
42.9 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| Table 3: Share of External Debt and Non-Debt Liabilities of India |
| (per cent) |
| Period |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (P) |
| Non-Debt Liabilities |
48.8 |
48.3 |
48.0 |
47.1 |
46.4 |
| Debt Liabilities |
51.2 |
51.7 |
52.0 |
52.9 |
53.6 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
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