Foreign-owned assets in India declines to $886.1 bn in Q2

Foreign-owned assets in India declined by USD 11.4 billion to USD 886.1 billion in the July-September quarter of this fiscal as compared to the second quarter of 2014-15, according to RBI data.
This is mainly due to decline in portfolio investments and loans by USD 13.6 billion and USD 1.7 billion, respectively.
Net claims of non-residents on India slipped by USD 5.6 billion over the previous quarter to USD 357.8 billion for the quarter ended September, according to Reserve Bank data on International Investment Position (IIP).
The ratio of India's international financial assets to international financial liabilities stood at 59.6 per cent in September 2015 as against 58.5 per cent in June 2015.

On the assets front, the Indian residents' financial assets abroad stood at USD 528.3 billion, down USD 5.8 billion from previous quarter as reserve assets and trade credit declined by USD 5.7 billion and USD 1.0 billion, respectively.
The difference in assets and liabilities, reflected by the net IIP, is disseminated with one quarter lag.
The IIP is an important input for understanding external sustainability and vulnerability, and is also useful in analysing the economic structure.