India's external financial liabilities up $14.6 billion at $80.1 billion in Q4 2008

26 May 2009

Net claim of non-residents on India, as reflected by net International Investment Position (assets – liabilities) as of end-December 2008, increased by $14.6 billion to $80.1 billion from $65.5 billion at end-September 2008.

India's total external financial assets declined by $16.7 billion to $340.3 billion as of end-December 2008 over the previous quarter mainly due to fall in reserve assets to the tune of $30.4 billion a Reserve Bank Release said..

Among the other components of external financial assets, `other investment' increased by $7.8 billion over end-September 2008 and stood at $21.9 billion at end-December 2008. Direct investment abroad increased by $5.9 billion over the previous quarter to $61.8 billion as at end-December 2008.

Total external financial liabilities of the country declined by $2.2 billion over the previous quarter and stood at $420.3 billion as of end-December 2008. This decline was mainly attributed to outflow by FIIs from portfolio equity investment during October-December 2008 and also on account of the effect of valuation changes.

Loan component of 'other investment' in India, increased by $8.5 billion during  quarter end-December 2008 over end-September 2008 and direct investment in India increased by $1.9 billion during the same period. Trade credit, which showed increasing trend over the previous quarters, declined by $3.0 billion over the previous quarter to $45.8 billion as at end-December 2008.

Reserve assets of the country stood at $255.9 billion exceeding the entire external debt ($230.8 billion) by $25.1 billion as at end-December 2008.