TMI BlogIndia’s International Investment Position (IIP), September 2012X X X X Extracts X X X X X X X X Extracts X X X X ..... India’s International Investment Position (IIP), September 2012 - News and Press Release Dated:- 31-12-2012 - News - India s International Investment Position (IIP), September 2012 Date: 31 Dec 2012 International Investment Position (IIP) is a statistical statement that shows, at a point in time, the value and the composition of- (a) financial assets of residents of an economy that are claims on non-residents and gold bullion held as reserve assets; and (b) liabilities of residents of an economy to non-residents. The difference between an economy's external financial assets and liabilities is its net IIP, which may be positive or negative. Such balance sheet analysis of international accounts helps in understanding sustainability and vulnerability and is useful for analysing economic structure, studying the relationship to domestic sources of financing and other policy considerations. Following are the highlights of IIP for the quarter-ended September 2012 : I. Overall International Investment Position (a) Quarterly Variations: Net claims of non-residents on India (as reflected by the Net IIP, i.e. International financial assets abroad less Internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l financial liabilities) increased by US$ 47.7 billion over the previous quarter to US$ 271.5 billion as at end-September 2012, mainly on account of US$ 55.6 billion increase in liabilities (Table 1). The changes in IIP also reflect the valuation changes emanating from exchange rate movements. The Indian residents financial assets abroad stood at US$ 441.7 billion as at end-September 2012 recording an increase of US$ 8.0 billion over previous quarter. Reserve assets, which remained the major component of international financial assets, raised by US$ 5.1 billion to US$ 294.8 billion at end-September 2012. Direct investment abroad moved up by US$ 1.4 billion during the quarter to US$ 115.8 billion as at end-September 2012. The International financial liabilities increased by US$ 55.6 billion over the previous quarter to US$ 713.2 billion as at end-September 2012. Direct and portfolio investments in India increased by US$ 24.4 billion and US$ 17.1 billion, respectively. Among other investments liabilities, currency and deposits (mainly NRI deposits), trade credit, and loan (mainly ECB) increased by US$ 6.1 billion, US$ 4.1 billion and US$ 3.7 billion, respectively. Equity liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lities in US$ term has gone up by US$ 39.0 billion (US$ 23.8 billion in Direct investment and US$ 15.2 billion in Portfolio investment). Due to rupee appreciation during end-June 2012 to end-September 2012 equity liabilities in US$ term revised upwards by US$ 21.0 billion (US$ 13.4 billion in Direct investment and US$ 7.6 billion in Portfolio investment). The ratio of India s international financial assets to international financial liabilities decreased to 61.9 per cent in September 2012 (66.0 per cent in June 2012). (b) Annual Variations International financial assets abroad declined by US$ 11.0 billion on a year-on-year basis (Table 1). Among the external financial assets, direct investment abroad observed consistent upward movement during last one year and moved up by US$ 8.2 billion on a year-on-year basis; in contrast, reserve assets declined by US$ 16.7 billion. International financial liabilities increased by US$ 58.1 billion on a year-on-year basis to US$ 713.2 billion as at end-September 2012. Both Direct investment and Portfolio Investment in India increased by US$ 13.1 billion and US$ 9.5 billion respectively. The other investment liabilities in the form of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade credit, loan and currency and deposits increased by US$ 35.5 billion. As a result of the above changes in external assets and liabilities, net claims of non-residents on India increased by US$ 69.1 billion as at end-September 2012, on a year-on-year basis. The ratio of India s international financial assets to international financial liabilities declined from 69.1 per cent in September 2011 to 61.9 per cent in September 2012. II. Composition of External Financial Assets and Liabilities Reserve Assets continued to have the dominant share (66.7 per cent) in India s international financial assets in September 2012, followed by direct investment abroad (26.2 per cent) (Table 2). Direct Investment (with share of 32.2 per cent), Portfolio Investment (23.2 per cent), loans (mainly ECBs) (23.0 per cent) were the major constituents of the country s financial liabilities. The other component of liabilities viz. trade credit and currency and deposits contributed to 10.8 and 9.4 per cent of country s financial liabilities. III. External Debt Liabilities vis- -vis External Non-Debt Liabilities Due to faster growth in net equity inflow compared with other internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l financial liabilities in September 2012 the share of non-debt liabilities increased to 48.5 per cent as at end- September 2012 from 46.6 percent at end June 2012 (Table 3). As per the Special Data Dissemination Standard (SDDS) of the International Monetary Fund (IMF), data on IIP are to be disseminated on an annual basis with a time lag of two quarters (quarterly dissemination encouraged with one quarter s lag). India s quarterly IIP are being disseminated with one quarter lag and the last quarterly IIP as at end-June 2012 was put in public domain on September 28, 2012. Table 1: Overall International Investment Position of India (US $ billion) Period Sep-11 (PR) Dec-11 (PR) Mar-12 (PR) Jun-12 (PR) Sep-12 (P) Net IIP -202.4 -208.8 -248.4 -223.8 -271.5 A. Assets 452.7 432.0 437.8 433.7 441.7 1. Direct Investment 107.6 109.5 112.4 114.4 115.8 2. Portfolio Investment 1.5 1.5 1.5 1.5 1.5 2.1 Equity Securities 1.5 1.5 1.5 1.5 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5 2.2 Debt Securities 0.0 0.0 0.0 0.0 0.0 3. Other Investment 32.1 24.3 29.5 28.2 29.7 3.1 Trade Credits 10.4 1.4 0.0 4.9 5.6 3.2 Loans 4.4 5.0 6.1 3.8 3.8 3.3 Currency Deposits 7.7 7.5 11.8 7.5 8.4 3.4 Other Assets 9.6 10.5 11.7 12.0 11.9 4. Reserve Assets 311.5 296.7 294.4 289.7 294.8 B. Liabilities 655.1 640.9 686.2 657.6 713.2 1. Direct Investment 216.9 206.5 222.3 205.6 230.0 2. Portfolio Investment 155.8 146.6 165.8 148.2 165.3 2.1 Equity Securities 121.2 109.7 125.3 110.5 125.7 2.2 Debt securities 34.6 36.9 40.5 37.7 39.7 3. Other Investment 282.4 287.7 298.1 303.7 317.9 3.1 Trade Credits 66.7 67.2 67.3 72.7 76.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2 Loans 154.0 157.7 160.0 160.3 164.0 3.3 Currency Deposits 52.4 52.6 58.8 61.1 67.2 3.4 Other Liabilities 9.3 10.2 12.0 9.6 10.0 PR: Partially revised P: Provisional; Note: 1. 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 Sep-11 (PR) Dec-11 (PR) Mar-12 (PR) Jun-12 (PR) Sep-12 (P) A. Assets 1. Direct Investment 23.8 25.4 25.7 26.4 26.2 2. Portfolio Investment 0.3 0.3 0.3 0.3 0.4 3. Other Investment 7.1 5.6 6.7 6.5 6.7 4. Reserve Assets 68.8 68.7 67.3 66.8 66.7 Total 100.0 100.0 100.0 100.0 100.0 B. Liabilities 1. Direct Investment 33.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32.2 32.4 31.3 32.2 2. Portfolio Investment 23.8 22.9 24.2 22.5 23.2 3. Other Investment 43.1 44.9 43.4 46.2 44.6 Total 100.0 100.0 100.0 100.0 100.0 PR: Partially revised P: Provisional; Table 3: Share of External Debt and Non-Debt Liabilities of India (per cent) Period Sep-11 (PR) Dec-11 (PR) Mar-12 (PR) Jun-12 (PR) Sep-12 (P) Non-Debt Liabilities 50.3 48.0 49.3 46.6 48.5 Debt Liabilities 49.7 52.0 50.7 53.4 51.5 Total 100.0 100.0 100.0 100.0 100.0 PR: Partially revised P: Provisional; Alpana Killawala Chief General Manager Press Release : 2012-2013/1098 Annex I: Sources of Data (1) Survey of India s Foreign Liabilities Assets: a) Data on Assets and Liabilities of Corporate Sector, data on Reinvested earnings, balances held abroad, export proceeds not realised by corporate sector, loans and defe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred export credit extended by corporate sector, Other assets of offices of corporate sector abroad, receivable dividend and interest, Dividend, Royalties outstanding, if any. b) Data on Assets Liabilities of Insurance Sector. (2) Balance held abroad by Government (Embassies Balances). (3) Loans to foreign Government (Budgetary Documents). (4) Head office funds of the overseas branches of Indian Scheduled Commercial banks (5) Subscription to International Monetary Fund (International Financial Statistics). (6) Banking Assets Liabilities (BAL) Statement. (7) Statement of Non-resident Rupees Accounts maintained with RBI. (8) India s External Debt A Status Report/ Annual Report, Quarterly Statement. (9) RBI Bulletin BoP Data. (10) International Banking Statistics (IBS). (11) Data Template on International Reserves Foreign Currency Liquidity. (12) Annual Reports of International Institutions. Annex-II: Item-wise Sources of Data International Investment Position (Standard Components as per BOPM5) Item SOURCE OF IIP DATA A. Assets 1. Direct investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t abroad 1.1 Equity capital and reinvested earnings 1.1.1 Claims on affiliated enterprises RBI Bulletin BOP Statement 1.1.2 Liabilities to affiliated enterprises 1.2 Other capital 1.2.1 Claims on affiliated enterprises RBI Bulletin BOP Statement 1.2.2 Liabilities to affiliated enterprises 2. Portfolio investment 2.1 Equity securities 2.1.1 Monetary authorities 2.1.2 General government 2.1.3 Banks Locational Banking Statistics 2.1.4 Other sectors $ FLA Survey Data 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 General government 2.2.1.3 Banks Locational Banking Statistics 2.2.1.4 Other sectors $ FLA Survey Data 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government 2.2.2.3 Banks Locational Banking Statistics 2.2.2.4 Other sectors 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial derivatives 3.1 Monetary authorities 3.2 General government 3.3 Banks 3.4 Other sectors 4. Other investment 4.1 Trade credits 4.1.1 General government 4.1.1.1 Long-term 4.1.1.2 Short-term 4.1.2 Other sectors 4.1.2.1 Long-term 4.1.2.2 Short-term Data pertains to Export proceeds not realized by Corporate Sector 4.2. Loans 4.2.1 Monetary authorities 4.2.1.1 Long-term 4.2.1.2 Short-term 4.2.2 General government 4.2.2.1 Long-term Budget Documents, Partition debt payable by Pakistan 4.2.2.2 Short-term 4.2.3 Banks 4.2.3.1 Long-term BAL Statement 4.2.3.2 Short-term 4.2.4 Other sectors 4.2.4.1 Long-term $ FLA Survey Data 4.2.4.2 Short-term 4.3 Currency and deposits 4.3.1 Monetary authorities 4.3.2 General government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Balances held abroad by embassies of India 4.3.3 Banks BAL Statement 4.3.4 Other sectors $ FLA Survey Data 4.4 Other assets 4.4.1 Monetary authorities 4.4.1.1 Long-term 4.4.1.2 Short-term 4.4.2 General government 4.4.2.1 Long-term Annual Reports of International Institutions 4.4.2.2 Short-term 4.4.3 Banks 4.4.3.1 Long-term BAL Statement and Head office funds of the overseas branches of Indian Scheduled Commercial banks 4.4.3.2 Short-term 4.4.4 Other sectors 4.4.4.1 Long-term $ FLA Survey Data 4.4.4.2 Short-term 5. Reserve assets 5.1 Monetary gold RBI Bulletin 5.2 Special drawing rights -do- 5.3 Reserve position in the Fund -do- 5.4 Foreign exchange Assets -do- 5.4.1 Currency and deposits Data in the template on International Reserves/Foreign Currency Liquidity 5.4.1.1 With monetary authorities -do- 5.4.1.2 With banks -d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o- 5.4.2 Securities -do- 5.4.2.1 Equities 5.4.2.2 Bonds and notes 5.4.2.3 Money market instruments and financial derivatives 5.4.3 Financial Derivatives (net) 5.5 Other claims B. Liabilities 1. Direct investment in reporting economy 1.1 Equity capital and reinvested earnings $$ RBI Bulletin - BOP Statement-Direct investments in India andData on Reinvested earnings (based on FLA Survey) 1.1.1 Claims on direct investors 1.1.2 Liabilities to direct investors 1.2 Other capital 1.2.1 Claims on direct investors 1.2.2 Liabilities to direct investors $$$ FDI Loans External Commercial Borrowings 2. Portfolio investment 2.1 Equity securities 2.1.1 Banks @@ 2.1.2 Other sectors $$ RBI Bulletin - BOP Statement-Portfolio investment in India. 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 Ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral government Statement on Non-resident Rupees Accounts maintained with RBI 2.2.1.3 Banks Securitised external commercial borrowings raised by banks 2.2.1.4 Other sectors ## India s External Debt : A Status Paper/Quarterly Statement (Securitised external commercial borrowings) 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government Statement on Non-resident Rupees Accounts maintained with RBI (Treasury Bills)+ FII Investments in Govt. Treasury Bills (India s External Debt : A Status Paper/Quarterly Statement) 2.2.2.3 Banks 2.2.2.4 Other sectors 3. Financial derivatives 3.1 Monetary authorities 3.2 General government 3.3 Banks 3.4 Other sectors 4. Other investment 4.1 Trade credits 4.1.1 General government 4.1.1.1 Long-term India's External Debt: A Status Report/Quarterly Statement Export Credit component of bilateral credit 4.1.1.2 Short-term 4.1.2 Other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sectors 4.1.2.1 Long-term India's External Debt : A Status Report/Quarterly Statement Suppliers' credit, Credit for defence purchases 4.1.2.2 Short-term * India's External Debt: A Status Report/Quarterly Statement: Short-Term Debt Others (trade related) Short-term Debt up to 6 months, above 6 months and up to 1 year 4.2 Loans 4.2.1 Monetary authorities 4.2.1.1 Use of Fund credit and loans from the Fund International Financial Statistics (IFS): Page 534 : India : Liabilities to IMF excluding SDR allocation 4.2.1.2 Other long-term 4.2.1.3 Short-term 4.2.2 General government 4.2.2.1 Long-term India's External Debt: A Status Report/Quarterly Statement / 4.2.2.2 Short-term 4.2.3 Banks 4.2.3.1 Long-term India's External Debt: A Status Report/Quarterly Statement/ RBI Bulletin 4.2.3.2 Short-term 4.2.4 Other sectors 4.2.4.1 Long-term ** India's External Debt: A Status Report/Quarterly Statement 4.2.4.2 Short-term 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Currency and deposits 4.3.1 Monetary authorities India's External Debt: A Status Report/Quarterly Statement (Short Term External Debt Liabilities of Central Bank) 4.3.2 General government 4.3.3 Banks @ India's External Debt: A Status Report/Quarterly Statement 4.3.4 Other sectors 4.4 Other liabilities 4.4.1 Monetary authorities 4.4.1.1 Long-term 4.4.1.2 Short-term 4.4.2 General government 4.4.2.1 Long-term # India's External Debt: A Status Report/Quarterly Statement 4.4.2.2 Short-term 4.4.3 Banks 4.4.3.1 Long-term 4.4.3.2 Short-term India's External Debt: A Status Report/Quarterly Statement - (External Debt Liabilities of banking system) 4.4.4 Other sectors 4.4.4.1 Long-term 4.4.4.2 Short-term $ FLA Survey Data R : Data are Revised PR : Data are Partially Revised. P : Data are Provisional. $ : Based on survey on Foreign Liabilities Assets $$ : Foreign Direct I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment (FDI) Portfolio Investment are not adjusted for price changes. $$$ : All liabilities (other than equity) between direct investor direct investment enterprises are treated as other capital. @ : Include accrued interest * : Suppliers Credit upto 180 days are included. ** : Includes Buyers' Credit. Loan transactions between direct investor direct investment enterprises are treated as other capital. ## : Include Foreign Currency Convertible Bonds. @@: Equity Investments in Banks by Non-residents included under FDI. #:: Includes SDRs 3,082.5 million allocated under general allocation and SDRs 214.6 million allocated under special allocation by the IMF done on August 28, 2009 and September 9, 2009, respectively. Note: i) NRO deposits are included under NRI deposits from the quarter ending June 2005. Supplier's Credits upto 180 days and FII investment in short term debt instruments are included under short term debt from the quarter ending March 2005. ii) Vostro credit balance is included in the liabilities of banking system under Other Liabilities,since September 2006 iii) As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r BPM6, SDR allocation is treated as debt liability - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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