Overseas claim on Indians rises 26.8 billion to $185.1 billion in April-June quarter

30 Sep 2010

Net claim of non-residents on India as reflected by the International Investment Position (IIP) of India (international assets - international liabilities) as of end-June 2010 increased by $26.8 billion to $185.1 billion from $158.4 billion as at end-March 2010.

The increase in net international claims was mainly due to increase in net inflow of direct investment and portfolio investment in India in addition to inflow of trade credit and loans, the Reserve Bank of India said in its quarterly release.

Total external financial assets of the country declined by $5.3 billion to $373.6 billion as at end-June 2010 from the previous quarter, due mainly to a $4.8 billion fall in other investments besides decrease in reserve assets ($3.4 billion).

Among the other components of external financial assets, direct investment abroad moved up by $2.8 billion from the previous quarter (ended 31 March 2010), to $82.1 billion as at end-June 2010.

Reserve assets, ie, official reserves (foreign currency assets, IMF reserve position, SDRs and gold) with the RBI declined by $3.4 billion over the previous quarter and stood at $275.7 billion at end-June 2010.

Reserve assets exceeded the total external debt ($273.1 billion) by $2.6 billion as at end-June 2010.