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:
- 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.
- 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).
- 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.
- Reserve assets, however, recorded an increase of US$ 13.2 billion over December 2023.
- 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.
- Reserve assets accounted for 59.0 per cent of India’s total international financial assets in December 2024 (Table 2).
- Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms.
- 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.
- 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 |
[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-September 2024 was released in the RBI website on December 30, 2024 |
