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:
- 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.
- 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).
- 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.
- Reserve assets had 63 per cent share in India’s total international financial assets in September 2024 (Table 2).
- 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.
- Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in US dollar terms.
- 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.
- 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 |
[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-June 2024 was released in the RBI website on September 30, 2024. |
