India’s International Investment Position (IIP), December 2022

Today, the Reserve Bank released data relating to India’s International Investment Position for end-December 2022^[1].

Key Features of India’s IIP in end-December 2022

• Net claims of non-residents on India declined by US$ 12.0 billion during October-December 2022 and stood at US$ 374.5 billion as at end-December 2022.

• The reduction in net claims was due to higher rise in Indian residents’ overseas financial assets (US$ 28.7 billion) as compared with the increase in foreign liabilities of Indians (US$ 16.7 billion) (Table 1).

• The rise in Indian residents’ foreign assets during Q3:2022-23 was mainly on account of an increase of US$ 30.0 billion in reserve assets, which had earlier declined by US$ 56.5 billion in the previous quarter.

• Reserve assets accounted for 64.3 per cent of India’s international financial assets as at end-December 2022 (Table 2).

• Trade credits and loans were primary contributors to the rise in India’s foreign liabilities.

• Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms, as the rupee depreciated by 1.49 per cent during the quarter.

• The share of debt liabilities in total external liabilities increased to 50.2 per cent as at end-December 2022 from 49.8 per cent a quarter ago and 48.4 per cent a year ago (Table 3).

• India’s international assets covered 70.0 per cent of India’s international liabilities in December 2022 as compared with 72.5 per cent a year earlier.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/1948

^[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-September 2022 was released in the RBI website on December 30, 2022.