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Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2024[1].
Key Features of IIP in end-September 2024:
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Net claims of non-residents on India declined by US$ 19.8 billion during Q2:2024-25 to US$ 348.5 billion in September 2024.
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Higher rise in Indian residents’ overseas financial assets (US$ 66.5 billion) as compared to that in the foreign-owned assets in India (US$ 46.7 billion) led to the decline in net claims of non-residents during the quarter (Table 1).
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Over 80 per cent of the increase in overseas financial assets during July-September 2024 was due to the surge of US$ 53.8 billion in the reserve assets.
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Reserve assets had 63 per cent share in India’s total international financial assets in September 2024 (Table 2).
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Rise in inward portfolio investment (US$ 16.5 billion) and loans (US$ 15.4 billion) together accounted for over two-thirds of the rise in foreign liabilities of Indian residents during the quarter.
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Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in US dollar terms.
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The ratio of India’s international assets to international liabilities improved to 76.2 per cent in September 2024 from 74.1 per cent a quarter ago and 71.4 per cent a year ago.
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The share of debt liabilities in total external liabilities increased to 52.7 per cent in September 2024 from 51.1 per cent a year ago (Table 3).
(Puneet Pancholy)
Chief General Manager
Press Release: 2024-2025/1810
| Table 1: Overall International Investment Position of India |
| (US$ billion) |
| Period |
Sep-23 (PR) |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (P) |
| Net IIP (A-B) |
-382.0 |
-368.1 |
-361.5 |
-368.3 |
-348.5 |
| A. Assets |
952.2 |
999.0 |
1,033.5 |
1,051.3 |
1,117.8 |
| 1. Direct Investment |
232.1 |
236.5 |
242.3 |
246.2 |
253.5 |
| 1.1 Equity and investment fund shares |
146.2 |
149.4 |
153.4 |
156.2 |
161.5 |
| 1.2 Debt instruments |
85.9 |
87.1 |
88.9 |
90.0 |
92.0 |
| 2. Portfolio Investment |
12.1 |
11.7 |
12.1 |
12.1 |
12.3 |
| 2.1 Equity and investment fund shares |
9.0 |
9.5 |
10.6 |
10.4 |
11.0 |
| 2.2 Debt securities |
3.1 |
2.2 |
1.5 |
1.7 |
1.3 |
| 3. Other Investment |
120.3 |
128.3 |
132.7 |
141.0 |
146.2 |
| 3.1 Trade Credits |
30.8 |
31.7 |
33.5 |
32.9 |
32.4 |
| 3.2 Loans |
12.0 |
18.5 |
17.6 |
20.8 |
22.2 |
| 3.3 Currency and Deposits |
45.7 |
44.3 |
53.5 |
57.8 |
56.1 |
| 3.4 Other Assets |
31.8 |
33.8 |
28.1 |
29.5 |
35.5 |
| 4. Reserve Assets |
587.7 |
622.5 |
646.4 |
652.0 |
705.8 |
| B. Liabilities |
1,334.2 |
1,367.1 |
1,395.0 |
1,419.6 |
1,466.3 |
| 1. Direct Investment |
528.7 |
536.9 |
542.9 |
552.9 |
555.5 |
| 1.1 Equity and investment fund shares |
497.6 |
505.6 |
511.1 |
520.7 |
523.0 |
| 1.2 Debt instruments |
31.1 |
31.3 |
31.8 |
32.2 |
32.5 |
| 2. Portfolio Investment |
259.3 |
269.0 |
277.0 |
277.1 |
293.6 |
| 2.1 Equity and investment fund shares |
154.6 |
161.2 |
162.0 |
160.9 |
170.9 |
| 2.2 Debt securities |
104.7 |
107.8 |
115.0 |
116.2 |
122.7 |
| 3. Other Investment |
546.2 |
561.2 |
575.1 |
589.6 |
617.2 |
| 3.1 Trade Credits |
124.7 |
123.2 |
123.7 |
126.6 |
129.9 |
| 3.2 Loans |
208.7 |
214.8 |
221.7 |
224.8 |
240.2 |
| 3.3 Currency and Deposits |
146.2 |
149.3 |
154.8 |
160.6 |
164.1 |
| 3.4 Other Liabilities |
66.6 |
73.9 |
74.9 |
77.6 |
83.0 |
| of which: |
|
|
|
|
|
| Special drawing rights (Net incurrence of liabilities) |
21.8 |
22.2 |
21.9 |
21.8 |
22.4 |
| Memo Item: Assets to Liability ratio (%) |
71.4 |
73.1 |
74.1 |
74.1 |
76.2 |
Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised; and R: 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 |
Sep-23 (PR) |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (P) |
| A. Assets |
| 1. Direct Investment |
24.4 |
23.7 |
23.4 |
23.4 |
22.7 |
| 2. Portfolio Investment |
1.3 |
1.2 |
1.2 |
1.2 |
1.1 |
| 3. Other Investment |
12.6 |
12.8 |
12.8 |
13.4 |
13.1 |
| 4. Reserve Assets |
61.7 |
62.3 |
62.6 |
62.0 |
63.1 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| B. Liabilities |
| 1. Direct Investment |
39.6 |
39.3 |
38.9 |
39.0 |
37.9 |
| 2. Portfolio Investment |
19.5 |
19.7 |
19.9 |
19.5 |
20.0 |
| 3. Other Investment |
40.9 |
41.0 |
41.2 |
41.5 |
42.1 |
| 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 |
Sep-23 (PR) |
Dec-23 (PR) |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (P) |
| Non-Debt Liabilities |
48.9 |
48.8 |
48.3 |
48.0 |
47.3 |
| Debt Liabilities |
51.1 |
51.2 |
51.7 |
52.0 |
52.7 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
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