Net financial assets of non-residents in India up $7.4 bn in Q2 FY24
31 Dec 2023
Net financial assets of non-residents in India increased by $7.4 billion to $380.9 billion in the second quarter of the current financial year (July-September 2023-24), leading to an increase in net claims of non-residents on residents, data released by the Reserve Bank of India (RBI) on Friday showed.
On the other hand, overseas financial assets of Indian residents rose by a lower $6.0 billion to $373.5 billion during the quarter, as per RBI data.
Indian residents’ foreign assets increased during July-September 2023 due to rise in currency and deposits as well as overseas direct investment, even though reserve assets and loans declined during the quarter.
Despite some reduction in direct investment liabilities, India’s total foreign liabilities rose during Q2FY24 due to increase in portfolio and other investments, RBI noted.
Reserve assets accounted for 63.0 per cent of India’s international financial assets at end-September 2023.
Variation in the exchange rate of the Indian rupee vis-à-vis other currencies impacted the change in liabilities, when valued in US dollar terms.
The ratio of India’s international financial assets to international financial liabilities improved to 71 per cent in September 2023, against 68.7 per cent a year ago.
The share of debt liabilities in total external liabilities rose marginally to 50.3 per cent in September 2023, against 49.8 per cent a year ago.