India’s overseas liabilities down $27 bn to $220 bn in April-June 2012

India's net overseas liabilities decreased by over $27 billion to around $220 billion as of end-June 2012, helped by a decrease in investment flows into the country and an increase in outflow of investments from the country.

Net claims of non-residents on India as reflected by net international investment position (IIP) decreased by $23.9 billion over the previous quarter to $220.3 billion as of end-June, mainly on account of a $27.4 billion decrease in the country's international liabilities.

Net investment position or IIP of a country is difference between its overseas financial assets and international financial liabilities. The changes in IIP also reflect the valuation changes emanating from exchange rate movements.

The known financial assets of Indians abroad stood at $433.5 billion as of end-June 2012, registering a decrease of $3.6 billion over the previous quarter.

Reserve assets, which remained the major component of international financial assets, declined by $4.7 billion to $289.7 billion as of end-June 2012. However, direct investments abroad moved up by $2 billion during the quarter to $113.7 billion as of end-June 2012.

India's international financial liabilities decreased by $27.4 billion over the previous quarter to $653.9 billion as at end-June 2012. Direct and portfolio investments in India decreased by $16.1 billion and $17.3 billion, respectively.