Net claims of non-residents on India declined by $34.2 billion in Q4 FY25: RBI

New Delhi, June 27 Net claims of non-residents on India declined by $34.2 billion during the January-March quarter of FY25 to $330 billion, the RBI data showed on Friday.

Higher rise in Indian residents’ overseas financial assets ($60.0 billion) as compared to that in the foreign-owned assets in India ($25.8 billion) led to the decline in net claims of non-residents during the quarter, according to data relating to India’s International Investment Position for end-March 2025.

“Increase in reserve assets accounted for over 54 per cent of the rise in Indian residents’ overseas financial assets, followed by currency and deposits and direct investments,” the IIP data showed.

Rise in loans ($10.0 billion) and inward direct investment ($9.7 billion) together accounted for over three-fourths of the rise in foreign liabilities of Indian residents during January-March 2025.

Reserve assets accounted for 58.7 per cent of India’s international financial assets. The ratio of India’s international assets to international liabilities increased to 77.5 per cent in March 2025 from 74.8 per cent a quarter ago.

According to the Central Bank, the share of debt liabilities in total external liabilities increased during the quarter and stood at 54.8 per cent.

During 2024-25, the net claims of non-residents declined by $31.2 billion on the back of higher rise in India’s external financial assets ($105.4 billion) vis-a-vis external financial liabilities ($74.2 billion).

Over 72 per cent of the rise in India’s overseas financial assets was due to increase in overseas direct investment, currency and deposits, and reserve assets. Inward direct investments, loans as well as currency & deposits accounted for over three-fourths of the rise in foreign liabilities during the year.

The ratio of India’s international financial assets to international financial liabilities increased to 77.5 per cent in March 2025 from 74.1 per cent a year ago, the data showed.

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