Explanation:

Explanation: The Net International Investment Position (NIIP) has been introduced to measure the total stock of external financial assets and liabilities. It is calculated as: Assets owned by the residents in other countries - Assets owned by the non-residents within India. Positive NIIP indicates that the Indian residents own more assets abroad, as compared to the assets owned by the nonresidents in India. Negative NIIP indicates that a country's residents own less assets abroad, than the assets of the non-residents. India's NIIP could worsen on account of: (a) Decrease in external assets; and (b) Increase in external liabilities. Higher External Commercial Borrowings (ECBs) would lead to higher liabilities and hence, could worsen the NIIP. However, higher FDI outflows would lead to higher external assets. Similarly, decrease in the NRI deposits leads to decrease in the external liabilities.