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Net claims of non-residents on India increased to USD 379.7 billion in the June quarter: RBI

Sep 29, 2023

By: BlinkX Research Team

According to RBI data released on Thursday, net claims by non-residents on India grew by USD 12.1 billion to USD 379.7 billion in the June quarter due to an increase in foreign-owned financial assets.

According to data on India's international investment position' for June-end, an increase in reserve assets, at USD 16.6 billion, was the main cause of the rise in Indian residents' foreign assets during the April to June period, followed by direct investment, loans, and trade credit.

"The rise in net claims of non-residents during the quarter was on account of higher rise in foreign-owned financial assets in India (USD 36.2 billion) when compared with Indian residents' overseas financial assets (USD 24.1 billion)," the Reserve Bank of India (RBI) said.

"Inward portfolio investment (USD 15 billion) and foreign direct investment (USD 8.9 billion) together accounted for two-thirds of the rise in foreign liabilities of Indian residents," it added.

According to the data, at the end of the June quarter, reserve assets made up 64.2% of India's international financial assets.

When liabilities were measured in US dollars, the variation in the rupee's exchange rate versus other currencies influenced the change in liabilities, according to the RBI data.

The RBI said that from 71.1 percent a quarter earlier and 71.5 percent a year earlier, the ratio of India's international assets to international liabilities decreased to 70.9 percent in June.

The overall external liabilities for the quarter were split nearly equally between debt and non-debt liabilities.