The country?s total external financial liabilities increased significantly by $32.7 billion over the previous quarter and stood at $476.4 billion as on September 2009. Direct investment and portfolio investment in the country increased by $11.0 billion and $ 10.2 billion, respectively.
Net claim of non-residents on India as reflected by the net IIP (International Assets ? International Liabilities) rose $11.7 billion to $97.8 billion from $86.1 billion as at end-June 2009.
Among other investment items, other liabilities, loan, and currency & deposits increased by $5.2 billion, $4 billion and $1.3 billion, respectively, over the previous quarter. The increase in other liabilities is due to the inclusion of SDR allocation of $4.8 billion under general allocation and $0.3 billion under special allocation by IMF on August 28, 2009, and September 9, 2009, respectively.
The share of reserve assets in the total external financial assets was 74.3 % as at end-September 2009, whereas direct investment and other investment accounted for 19.6 % and 5.9%, respectively.
On the liability side, other investment in India, i.e., trade credits, loans, currency & deposits and other liabilities, accounted for 45.5% of country?s external financial liabilities as at end-September 2009, of which loans component accounted for 25.4% share in the total external financial liabilities.
Direct investment and portfolio investment contributed 32.3 % and 22.2 % share, respectively, in country?s external financial liabilities as at end-September 2009.
The share of non-debt liabilities to total external financial liabilities increased marginally by 0.8% to 48.8% at end-September 2009 over the previous quarter, due to increase in inflow of direct investment and portfolio equity investment in India.