Net claims of non-residents on India decline by US$ 6.4 billion during Q4FY24

The Reserve Bank Of India or RBI stated in a latest update that net claims of non-residents on India declined by US$ 6.4 billion during Q4:2023-24 to US$ 361.7 billion as at end-March 2024. Indian residents' overseas financial assets recorded higher rise (US$ 38.1 billion) as compared to that in the foreign-owned assets in India (US$ 31.7 billion), which led to the decline in net claims of non-residents during the quarter.

The rise in India's foreign liabilities was attributed to higher inward direct investments, portfolio investments, loans as well as currency and deposits taken by resident entities even as trade credits recorded a marginal decline. Increase in the reserve assets (US$ 23.9 billion) was the dominant component of the rise in Indian residents' overseas financial assets during January-March 2024, followed by currency and deposits, and overseas direct investments.

On an outstanding basis, reserve assets accounted for 62.9 per cent of India's international financial assets in March 2024. The ratio of India's international assets to international liabilities improved to 74.0 per cent in March 2024 from 72.9 per cent a quarter ago. The share of debt liabilities in total external liabilities increased marginally during the quarter and stood at 51.1 per cent in March 2024.

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