Mumbai, Aug 28 (UNI) The net International Investment position (IIP) of India resulted in net claim of non-residents on India, lower by USD 8.95 billion at USD 53.01 billion from a level of USD 61.96 billion as at end-March 2007.
The decline in net claim of non-residents on India resulted due to increase in Reserve Assets and loan assets of banking sector. The net claim of non-residents on India as at end-December 2007 was at USD 78.64 billion according to a release by RBI here today on overall International Investment position of the country.
Among external financial assets, the Reserve Assets registered an increase of USD 110.54 billion over the end-March 2007 and stood at USD 309.72 billion at end-March 2008. Direct Investment abroad increased by USD 16.78 billion during the same period and was at USD 46.19 billion as at end-March 2008. Other Investment grew by USD 8.33 billion, mainly due to the increase in the loan extended to non-residents by banking sector.
The Reserve Assets at USD 309.72 billion exceeded the entire external debt (USD 221.21 billion) by USD 88.51 billion as at end-March 2008.
Regarding external financial liabilities, the Apex Bank said Portfolio Investment (mainly covering Equity Securities) and Direct Investment in India increased by USD 40 billion and USD 39.26 billion respectively, at end-March 2008 over end-March 2007.
Portfolio Equity Investment at end-March 2008, however, declined by USD 5.22 billion from USD 103.50 billion as at end-December 2007.
Further, loans and trade credits components of 'Other Investment' in India increased by USD 25.52 billion and USD 17.98 billion respectively during end-March 2008 over end-March 2007.
The ratio of net IIP of India to GDP was - (minus)4.5 per cent as at end-March 2008 as compared with - (minus)6.5 per cent as at end-March 2007.
The total external financial assets to GDP (at current prices) ratio increased to 32.4 per cent as at end-March 2008 from 25.9 per cent as at end-March 2007. The Reserve Assets to GDP ratio stood at 26.3 per cent as at end-March 2008 as compared to 20.9 per cent as at end-March 2007.
The ratio of total external financial liabilities to GDP increased from 32.4 per cent as at end-March 2007 to 36.9 per cent as at end-March 2008. Of the total external financial assets, Reserve Assets accounted for around 81.2 per cent, followed by Direct Investment and Other Investment accounting for 12.1 per cent and 6.5 per cent respectively Around 45.9 per cent of country's external financial liabilities were in the form of Other Investments such as trade credits and loans, which accounted for 27.5 per cent and 26.6 per cent respectively and currency and deposits amounted to 10.3 per cent.
The share of non-debt liabilities to total external financial liabilities, which increased continuously from 40.9 per cent as at end-June 2006 to 49.4 per cent as at end-December 2007, declined to 48.2 per cent as at end-March 2008.
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