Net claims of non-residents on India declined by US$19.8 billion

Delhi Delhi: India’s international investment position data released by the RBI on Monday showed that net claims of non-residents on India declined by USD 19.8 billion to USD 348.5 billion during the July-September quarter of 2024-25.Net claims of non-residents declined during the quarter due to a higher increase in foreign financial assets of Indian residents (USD 66.5 billion) than foreign-owned assets in India (USD 46.7 billion), the RBI said.

Net claims of non-residents on India refer to the difference between assets and liabilities held by non-residents in India. According to reports, it reflects the overall financial position or risk of entities/individuals outside India in terms of claims (assets) on the country. More than 80 per cent of the increase in foreign financial assets during July-September 2024 was due to an increase of US$ 53.8 billion in reserve assets. The share of reserve assets in India’s total international financial assets in September 2024 was 63 per cent.

A rise in inward portfolio investment ($16.5 billion) and loans ($15.4 billion) contributed more than two-thirds of the increase in foreign liabilities of Indian residents during the quarter, the central bank said. The ratio of India’s international assets to international liabilities rose to 76.2 per cent in September 2024 from 74.1 per cent a quarter ago and 71.4 per cent a year ago. The share of debt liabilities in total external liabilities rose to 52.7 per cent in September 2024 from 51.1 per cent a year ago. (ANI)