India's international financial liabilities down by $12.8 bn in Q2

Satyanarayan Iyer Mumbai | Updated on December 31, 2013

India’s international financial liabilities decreased by $12.8 billion to $296.2 billion in the three-month period ended September 30, 2013, the Reserve Bank of India said in a statement.

In the July to September period, international financial assets of India’s citizens grew $2.2 billion to $436.7 billion. During the same period, the non-residents had a total claim of $732.9 billion on India, implying that the country owes this money to them at different points in time.

The country’s liability to non-residents dropped $10.6 billion during the quarter.

Direct investment, portfolio investment

Direct investment and portfolio investment by non-residents in India dropped $2.4 billion and $13.3 billion, respectively, from the previous quarter.

Non-residents put $124.3 billion ($131.6 billion in the previous quarter) in equities and $44.9 billion ($50.8 billion) in debt during the quarter.

International investment position is a statistical statement that shows the value and composition of financial assets of residents of an economy and liabilities of residents of an economy to non-residents.

Such balance sheet analysis of international accounts helps in understanding the sustainability and vulnerability of economy’s external sector, according to RBI.

The changes in international investment position of a country also reflect the valuation changes emanating from exchange rate movements.

Published on December 31, 2013

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