Though the average CAD was moderate for a long period, this has expanded since 2008–09. What does this imply? The persistent current account deficit accumulates into increasing claim of non-residents on India. This is captured in India’s international investment position (IIP) which delineates its external balance sheet.
India’s international liabilities have remained higher than international assets  BIS central bankers’ speeches  9  and the difference between the two has increased significantly from US $ (-) 51 billion at endMarch 2008 to US $ (-) 238 billion at end-June 2011 but improved slightly to $ (-) 225 billion at end-September 2011 (Chart 6).