India's International investment position in Sep '07 declines

Mumbai, Mar 19 (UNI) The Reserve Bank of India today said the net International Investment Position (IIP) of the country as at end September 2007 had declined by USD 11.51 billion.

The Net IIP (assets-liabilities) of India had resulted in net claims of non residents to India, resulting largely from portfolio and direct investment in India and external commercial loans declined to USD 68.72 billion at end September last year from USD 80.23 billion at end June, RBI said ion a release here today.

RBI had been relesing the international investment position of India on a quarterly basis, with a lag of less than two quarters since June 2006.

Among the external financial assets, reserve assets had registered an increase of USD 34.41 billion as at end september 2007, touching USD 302.23 billion as against USD 261.80 billion, recorded end June 2007.

The total reserve assets exceeded the entire external debt USD 190.52 billion by USD 57.25 billion as at end September last year.

Regarding external financial liabilities, the portfolio investment and other investment in India increased by USD 14.41 billion and USD 8.64 billion respectively during the period udner review. Further Direct ivnestment in India incrased by US D 5.87 billion to USD 93.48 billion from a level of USD 87.61 billion as at end june 2007.

The major part of country's external financial assets was in the form of reserve assets constituting around 82 per cent followed by direct invetment and other investment accounting for 11.7 per cent and 6.1 per cent respectively.

As at end September 2007, the country's external financial liabilities to the tune of 45.6 per cent were in the form of other investment, including trade credits, loans, currency and deposits and other liabilities followed by portfolio investment at 29.2 per cent and direct investment at 25.2 per cent.

The share of non debt liabilities to total external financial liabilities increased to 49 per cent as at end september 2007 from 47.6 per cent as at end june 2007 due to to capital inflow under portfolio and direct investments.

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