Today, the Reserve Bank released data relating to India’s International Investment Position at end-December 2020.
Key Features of India’s IIP in December 2020
- Net claims of non-residents on India increased by US$ 3.1 billion from their level at the end of the previous quarter (Table 1).
- Higher increase in foreign-owned assets in India (US$ 52.3 billion) vis-à-vis Indian residents’ overseas financial assets (US$ 49.2 billion) resulted in the rise in India’s net foreign liabilities during the quarter.
- Reserve assets accounted for over two-thirds of India’s international financial assets (Table 2).
- Foreign direct investment (FDI) and portfolio equity investment dominated the rise in India’s foreign liabilities; the share of non-debt liabilities in total external liabilities increased to 52.4 per cent (50.8 per cent at end-September 2020) (Table 3).
- The ratio of India’s international financial assets to international financial liabilities improved to 71.4 per cent in December 2020 from 62.1 per cent a year ago.
(Yogesh Dayal)
Chief General Manager
