Net IPP decreased by $8.1 bn to $353.1 bn in June quarter

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Mumbai | Published: September 30, 2016 9:27:50 PM

The net claims of non-residents on India or net International Investment Position (IIP) decreased by USD 8.1 billion to USD 353.1 billion in the quarter ended June 2016, Reserve Bank said today.

The net claims of non-residents on India or net International Investment Position (IIP) decreased by USD 8.1 billion to USD 353.1 billion in the quarter ended June 2016, Reserve Bank said today. (Reuters)The net claims of non-residents on India or net International Investment Position (IIP) decreased by USD 8.1 billion to USD 353.1 billion in the quarter ended June 2016, Reserve Bank said today. (Reuters)

The net claims of non-residents on India or net International Investment Position (IIP) decreased by USD 8.1 billion to USD 353.1 billion in the quarter ended June 2016, Reserve Bank said today.

“This change in the net position reflected a USD 6 billion decrease in the value of foreign-owned assets in the country vis-à-vis a USD 2.1 billion increase in the value of Indian residents’ financial assets abroad,” RBI said in a release here today.

Indian residents’ financial assets abroad increased by USD 2.1 billion to USD 552.2 billion in the quarter ended June 2016 due to increase in reserve assets.

“Indian residents’ financial assets abroad stood at USD 552.2 billion as at end-June 2016 exhibiting an increase of USD 2.1 billion over previous quarter mainly due to increase of USD 3.3 billion in reserve assets and USD 1.8 billion in direct investment, even as loans declined by USD 1.9 billion during the quarter,” RBI said.

Foreign-owned assets in the country decreased by USD 6 billion over the previous quarter to USD 905.3 billion as at end-June 2016 mainly due to the decrease in portfolio investments in the country and currency and deposits by USD 4.3 billion and USD 0.6 billion, respectively.

During the quarter ended June the variation in exchange rate of Rupee vis-a-vis other currencies affected change in liabilities, when valued in USD terms.

Although there was a net equity inflow of USD 7.6 billion during the period.

Equity liabilities decreased by USD 0.5 billion from USD 422.1 billion in March 2016 to USD 421.6 billion in June 2016, on account of exchange rate change during the quarter.

The ratio of the country’s international financial assets to international financial liabilities stood at 61 per cent in June 2016 as against 60.4 per cent in March 2016.

RBI said reserve assets continued to have the dominant share at 65.8 per cent in the country’s international financial assets in June 2016, followed by direct investment abroad at 26 per cent.

Direct investment (32.5 per cent), portfolio investment (24.4 per cent), loans (18.8 per cent), and currency and deposits (14 per cent) were the major constituents of the country’s financial liabilities in June 2016.

The share of non-debt liabilities increased marginally to 46.6 per cent as at end-June 2016 from 46.3 per cent at end-March 2016, RBI said.

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