Net overseas investment in India tops $62 billion

Net claim of non-residents on India as reflected by the net international investment position (assets – liabilities) as of end-September 2008, increased by $10.2 billion to $62.2 billion from $52.0 billion at end-June 2008.

The total external financial assets of the country declined by $19.7 billion to $358.2 billion as of end-September 2008 over the previous quarter mainly due to fall in reserve assets to the tune of $25.8 billion. 

Among the other components of external financial assets, direct investment abroad increased by $3.2 billion over the previous quarter to $55.9 billion as of end-September 2008. Other investment increased by $2.9 billion over end-June 2008 and stood at $15.4 billion at end-September 2008.

The international investment position (IIP), compiled at the end of a specific period, is the statement of the stock of external financial assets and liabilities of a country.

The financial assets consist of the country's financial claims on non-residents and financial liabilities consist of the country's financial liabilities to non-residents.

These transactions are classified according to institutional resident sectors, namely, monetary authority, government, banks, and other sectors, including corporate sector. The net international investment position (the stock of external financial assets less the stock of external financial liabilities) shows the difference between what an economy owns in relation to what it owes.

As per the special data dissemination standard (SDDS) of the International Monetary Fund (IMF), data on IIP are to be disseminated on annual basis (quarterly encouraged) with a time lag of two quarters. In India, since the quarter end-June 2006 onwards, the IIP is being disseminated on quarterly basis with a lag of less than two quarters. The quarterly IIP as at end-June 2008 was released on RBI website on 10 December 2008.