Key Features of India’s IIP in September 2019
- Net claims of non-residents on India declined by US$ 14.8 billion during July-September 2019 (Table 1).
- The decline in net claims was due to an increase of US$ 7.4 billion in Indian residents’ overseas financial assets and a reduction in foreign-owned assets in India by US $ 7.4 billion during the quarter.
- The decline in foreign-owned assets in India was mainly due to reduction in portfolio equity investment.
- Depreciation of the Indian rupee against the US dollar during the quarter contributed to the reduction in India’s liabilities, when valued in US dollar terms.
- Increase in reserve assets, currency and deposits as well as overseas direct investments resulted in higher foreign assets of Indian residents.
- Reserve assets accounted for nearly 65 per cent of total foreign assets (Table 2).
- The share of debt liabilities in total liabilities increased marginally to 51.0 per cent in September 2019 from 50.6 per cent a quarter ago (Table 3).
- Source: rbi.org.in