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Net claims of non-residents on India up by $21.1 billion in September-December quarter

MUMBAI: Net claims of non-residents on India increased by $21.1 billion during the December quarter due to an increase in foreign-owned assets combined with a decline in Indian residents’ overseas financial assets, according to the RBI data.
Higher inward direct investment, trade credit and loans contributed to the increase in non-residents’ claims on India even as foreign portfolio investment in India reduced during the quarter, said India’s International Investment Position (IIP), December 2021.
“Net claims of non-residents on India increased by $21.1 billion during October-December 2021 due to an increase of $16.2 billion in foreign-owned assets in India combined with a decline of $4.9 billion in Indian residents’ overseas financial assets,” it said.
Indian residents’ overseas financial assets declined during the quarter, mainly due to reduction in currency and deposits.
As per the IIP, reserve assets accounted for 68.4 per cent of Indian residents’ foreign assets.
Also, the share of debt liabilities in total liabilities increased marginally during the quarter and stood at 48.5 per cent in December 2021.
The ratio of India’s international financial assets to international financial liabilities stood lower at 72.1 per cent in December 2021 (73.4 per cent in September 2021), the RBI said.




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