Net Indian assets of NRIs up $9.3 bn in January-March FY15

Net claims of non-residents on India (as reflected by the net international investment position of Indians) increased by $9.3 billion over the previous quarter to $363.0 billion as of end-March 2015.

During the January-March quarter of the 2014-15 fiscal, foreign-owned assets in India increased to $36.6 billion while the value of Indian residents' financial assets abroad increased to $27.3 billion during the period.

Indian residents' financial assets abroad stood at $517.8 billion as of end-March 2015, showing an increase of $27.3 billion over the previous quarter, mainly due to an increase of $20.9 billion in reserve assets and $7.9 billion increase in currency and deposits, even as trade credit assets declined by $3.6 billion during the quarter, the Reserve Bank of India (RBI) stated in its latest report.

Foreign-owned assets in India increased by $36.6 billion over the previous quarter to $880.8 billion in January-March 2014-15 mainly due to the increase in direct and portfolio investments in India by $12.6 billion and $16.9 billion, respectively.

Among other investment liabilities, currency and deposits increased by $5.1 billion.

Variation in exchange rate of the rupee vis-a-vis other currencies affected change in liabilities, when valued in dollar terms. Equity liabilities increased by $19.1 billion, from $382.4 billion in December 2014 to $401.5 billion in March 2015, partly due to the revaluation of the past liabilities on account of rupee appreciation during the quarter, while net inflow was $14.7 billion during the period.

The ratio of India's international financial assets to international financial liabilities stood at 58.8 per cent in March 2015 (58.1 per cent in December 2014).

During the financial year 2014-14, Indian-owned international financial assets abroad increased by $34.1 billion, which included $1.8 billion in direct investment abroad and $37.4 billion in reserve assets, even as trade credit declined by $6.0 billion.

During the year, India's international financial liabilities increased by $60.3 billion, including direct investment of $22.0 billion and portfolio investment of $30.6 billion.

Among other investments, currency and deposits increased by $11.3 billion during the year.

Consequently, net claims of non-residents on India increased by $26.2 billion during the financial year 2014-15.

The ratio of total international financial assets to GDP (at current prices) increased to 25.8 per cent as at end-March 2015 from 25.6 per cent a year ago. Reserve assets to GDP ratio increased to 17.1 per cent as of end-March 2015 from 16.1 per cent at end-March 2014.

The ratio of total international financial liabilities to GDP rose to 44.0 per cent as of end-March 2015 from 43.5 per cent a year ago.

Among international financial liabilities, the ratio of direct investment and portfolio investment to GDP stood at 13.2 per cent and 11.4 per cent, respectively, as of end-March 2015.

The ratio of net IIP to GDP was (-) 18.1 per cent as of end-March 2015.

Reserve assets continued to have the dominant share (66.0 per cent) in India's international financial assets as of March 2015, followed by direct investment abroad (25.2 per cent).

Direct Investment (30.0 per cent), portfolio investment (25.9 per cent), loans (20.3 per cent), and currency and deposits (13.1 per cent) were the major constituents of the country's financial liabilities.

The share of non-debt liabilities increased marginally to 45.6 per cent as of end-March 2015 from 45.3 per cent at end-December 2014.