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Key Features of India’s IIP in March 2018
I. Quarterly Variations:
· Net claims of non-residents on India declined by US$ 1.8 billion during the quarter (Table 1).
· Indian residents’ overseas financial assets increased by US$ 19.6 billion, a substantial portion of which came from increase in reserve assets.
· Foreign-owned assets in India increased by US$ 17.8 billion with broad-based contribution from portfolio debt securities, trade credit, commercial loans, foreign direct investment and currency and deposits.
· Reserve assets accounted for over two-thirds of India’s international financial assets; overseas direct investment was the second largest category of assets (Table 3).
· Debt and non-debt liabilities had nearly equal share in total liabilities to non-residents (Table 4).
· The ratio of India’s international financial assets to international financial liabilities stood at 60.1 per cent in March 2018 (59.2 per cent in December 2017).
II. Annual Variations
· There was an increase of US$ 31.8 billion in net claims of non-residents on India during 2017-18, as the increase in foreign owned assets in India (US$ 94.7 billion) exceeded the increase in Indian residents’ overseas financial assets (US$ 62.9 billion).
· The major portion of the increase in India’s international financial assets came from reserve assets.
· Direct investment, portfolio debt investment, trade credit, and, currency and deposits contributed to the higher increase in liabilities to non-residents.
III. Ratio of International Financial Assets and Liabilities to GDP
· The ratio of total international financial assets to Gross Domestic Product (GDP) at current prices, increased marginally to 24.5 per cent in March 2018 from 24.2 per cent a year ago (Table 2). The ratio of reserve assets to GDP increased to 16.5 per cent in March 2018 from 15.7 per cent a year ago.
· The ratio of total international financial liabilities to GDP stood at 40.8 in March 2018, nearly same as a year ago.
· The ratio of net IIP to GDP was (-) 16.3 per cent in March 2018.
Table 1: Overall International Investment Position of India
|
(US $ billion)
|
Period
|
Mar-17(R)
|
Jun-17(PR)
|
Sep-17(PR)
|
Dec-17(PR)
|
Mar-18(P)
|
Net IIP
|
-388.5
|
-400.6
|
-397.6
|
-422.1
|
-420.3
|
A. Assets
|
569.9
|
582.3
|
600.9
|
613.2
|
632.8
|
1. Direct Investment
|
148.2
|
151.2
|
153.5
|
155.2
|
157.4
|
2. Portfolio Investment
|
2.6
|
2.1
|
2.5
|
2.6
|
2.7
|
2.1 Equity Securities
|
1.6
|
2.0
|
2.4
|
2.3
|
1.3
|
2.2 Debt Securities
|
1.0
|
0.1
|
0.0
|
0.3
|
1.4
|
3. Other Investment
|
49.1
|
42.4
|
44.7
|
46.3
|
48.2
|
3.1 Trade Credits
|
1.8
|
1.2
|
1.3
|
1.6
|
1.7
|
3.2 Loans
|
7.4
|
5.2
|
6.0
|
5.6
|
8.2
|
3.3 Currency & Deposits
|
22.0
|
18.1
|
19.2
|
20.8
|
20.8
|
3.4 Other Assets
|
17.9
|
18.0
|
18.3
|
18.4
|
17.5
|
4. Reserve Assets
|
370.0
|
386.5
|
400.2
|
409.1
|
424.5
|
B. Liabilities
|
958.4
|
982.8
|
998.5
|
1035.3
|
1053.1
|
1. Direct Investment
|
342.6
|
353.2
|
364.1
|
377.5
|
379.4
|
2. Portfolio Investment
|
238.4
|
250.9
|
253.8
|
267.5
|
272.2
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2.1 Equity Securities
|
154.0
|
154.9
|
150.1
|
155.7
|
155.1
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2.2 Debt securities
|
84.4
|
96.0
|
103.7
|
111.8
|
117.1
|
3. Other Investment
|
377.4
|
378.7
|
380.6
|
390.3
|
401.5
|
3.1 Trade Credits
|
88.9
|
89.6
|
93.6
|
98.4
|
103.2
|
3.2 Loans
|
159.5
|
158.3
|
156.6
|
155.9
|
159.7
|
3.3 Currency & Deposits
|
117.1
|
118.5
|
118.3
|
123.5
|
126.4
|
3.4 Other Liabilities
|
11.9
|
12.3
|
12.2
|
12.4
|
12.2
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Memo item: Assets to Liability Ratio (%)
|
59.5
|
59.2
|
60.2
|
59.2
|
60.1
|
R: Revised PR: Partially revised P: Provisional;
The sum of the constituent items may not add to the total due to rounding off.
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Table 2: Ratios of External Financial Assets and Liabilities to GDP
|
(per cent)
|
Period
|
Mar-16 (R)
|
Mar-17 (PR)
|
Mar-18(P)
|
Net IIP (Assets - Liabilities)
|
-17.4
|
-16.5
|
-16.3
|
A. Assets
|
26.5
|
24.2
|
24.5
|
1. Direct Investment Abroad
|
6.8
|
6.3
|
6.1
|
2. Portfolio Investment
|
0.1
|
0.1
|
0.1
|
2.1 Equity Securities
|
0.1
|
0.1
|
0.0
|
2.2 Debt Securities
|
0.0
|
0.0
|
0.1
|
3. Other Investment
|
2.3
|
2.1
|
1.9
|
3.1 Trade Credits
|
0.1
|
0.1
|
0.0
|
3.2 Loans
|
0.3
|
0.3
|
0.3
|
3.3 Currency and Deposits
|
1.0
|
0.9
|
0.8
|
3.4 Other Assets
|
0.8
|
0.8
|
0.7
|
4. Reserve Assets
|
17.3
|
15.7
|
16.5
|
B. Liabilities
|
43.9
|
40.7
|
40.8
|
1. Direct Investment in India
|
14.2
|
14.6
|
14.7
|
2. Portfolio Investment
|
10.8
|
10.1
|
10.6
|
2.1 Equity Securities
|
6.8
|
6.5
|
6.0
|
2.2 Debt securities
|
4.0
|
3.6
|
4.5
|
3. Other Investment
|
18.9
|
16.0
|
15.6
|
3.1 Trade Credits
|
4.0
|
3.8
|
4.0
|
3.2 Loans
|
8.2
|
6.8
|
6.2
|
3.3 Currency and Deposits
|
6.1
|
5.0
|
4.9
|
3.4 Other Liabilities
|
0.6
|
0.5
|
0.5
|
Table 3: Composition of International Financial Assets and Liabilities of India
|
(per cent)
|
Period
|
Mar-17(R)
|
Jun-17(PR)
|
Sep-17(PR)
|
Dec-17(PR)
|
Mar-18(P)
|
A. Assets
|
|
|
|
|
|
1. Direct Investment
|
26.0
|
26.0
|
25.5
|
25.3
|
24.9
|
2. Portfolio Investment
|
0.5
|
0.4
|
0.4
|
0.4
|
0.4
|
3. Other Investment
|
8.6
|
7.3
|
7.4
|
7.6
|
7.6
|
4. Reserve Assets
|
64.9
|
66.3
|
66.6
|
66.7
|
67.1
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Assets/Liabilities
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
B. Liabilities
|
|
|
|
|
|
1. Direct Investment
|
35.7
|
36.0
|
36.5
|
36.5
|
36.0
|
2. Portfolio Investment
|
24.9
|
25.5
|
25.4
|
25.8
|
25.9
|
3. Other Investment
|
39.4
|
38.5
|
38.1
|
37.7
|
38.1
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Table 4: Share of External Debt and Non-Debt Liabilities of India
|
(per cent)
|
Period
|
Mar-17(R)
|
Jun-17(PR)
|
Sep-17(PR)
|
Dec-17(PR)
|
Mar-18(P)
|
Non-Debt Liabilities
|
50.3
|
50.1
|
49.9
|
50.0
|
49.2
|
Debt Liabilities
|
49.7
|
49.9
|
50.1
|
50.0
|
50.8
|
Total
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
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Jose J. Kattoor
Chief General Manager
Press Release: 2017-2018/3410
1 India’s quarterly IIP is disseminated with a one- quarter lag. The IIP for end- December 2the public domain on March 28, 2018
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