Source: Reserve Bank of India
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Today, the Reserve Bank released data relating to India’s International Investment Position for end-March 2025[1].
Key Features
IIP during January-March 2025:
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Net claims of non-residents on India declined by US$ 34.2 billion during Q4:2024-25 to US$ 330.0 billion as at end-March 2025.
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Higher rise in Indian residents’ overseas financial assets (US$ 60.0 billion) as compared to that in the foreign-owned assets in India (US$ 25.8 billion) led to the decline in net claims of non-residents during the quarter (Table 1).
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Increase in reserve assets accounted for over 54 per cent of the rise in Indian residents’ overseas financial assets, followed by currency & deposits and direct investments.
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Rise in loans (US$ 10.0 billion) and inward direct investment (US$ 9.7 billion) together accounted for over three-fourths of the rise in foreign liabilities of Indian residents during January-March 2025.
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Reserve assets accounted for 58.7 per cent of India’s international financial assets (Table 3).
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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 (Chart 1 & Table 1).
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The share of debt liabilities in total external liabilities increased during the quarter and stood at 54.8 per cent (Table 4).
IIP during April-March 2024-25:
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During 2024-25, the net claims of non-residents declined by US$ 31.2 billion on the back of higher rise in India’s external financial assets (US $ 105.4 billion) vis-à-vis external financial liabilities (US $ 74.2 billion) (Table 1).
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Over 72 per cent of the rise in India’s overseas financial assets was due to increase in overseas direct investment, currency & deposits, and reserve assets.
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Inward direct investments, loans as well as currency & deposits accounted for over three-fourths of the rise in foreign liabilities during the year.
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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 (Chart 1 & Table 1).
Ratio of International Financial Assets and Liabilities to Gross Domestic Product (GDP):
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As a ratio to GDP (at current market prices), residents’ overseas financial assets increased and external financial liabilities declined during 2024-25 (Table 2).
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The ratio of net claims of non-residents on India to GDP improved to (-)8.7 per cent in March 2025 from (-)10.1 per cent a year ago, and (-)14.1 per cent five years ago.
(Puneet Pancholy)
Chief General Manager
Press Release: 2025-2026/616
| Table 1: Overall International Investment Position of India |
| (US$ billion) |
| Period |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (PR) |
Mar-25 (P) |
| Net IIP (A-B) |
-361.2 |
-366.9 |
-353.0 |
-364.2 |
-330.0 |
| A. Assets |
1,033.8 |
1,052.0 |
1,119.4 |
1,079.2 |
1,139.2 |
| 1. Direct Investment |
242.3 |
246.6 |
254.5 |
260.8 |
270.5 |
| 1.1 Equity and investment fund shares |
153.4 |
156.6 |
162.4 |
166.5 |
173.6 |
| 1.2 Debt instruments |
88.9 |
90.0 |
92.1 |
94.3 |
96.9 |
| 2. Portfolio Investment |
12.5 |
12.4 |
12.5 |
12.2 |
13.7 |
| 2.1 Equity and investment fund shares |
11.0 |
10.7 |
11.2 |
9.4 |
8.7 |
| 2.2 Debt securities |
1.5 |
1.7 |
1.3 |
2.8 |
5.0 |
| 3. Other Investment |
132.6 |
141.0 |
146.6 |
170.5 |
186.7 |
| 3.1 Trade Credits |
33.4 |
32.8 |
32.9 |
33.2 |
33.4 |
| 3.2 Loans |
17.6 |
20.8 |
22.1 |
22.5 |
25.9 |
| 3.3 Currency and Deposits |
53.5 |
57.8 |
56.1 |
68.6 |
79.3 |
| 3.4 Other Assets |
28.1 |
29.6 |
35.5 |
46.2 |
48.1 |
| 4. Reserve Assets |
646.4 |
652.0 |
705.8 |
635.7 |
668.3 |
| B. Liabilities |
1,395.0 |
1,418.9 |
1,472.4 |
1,443.4 |
1,469.2 |
| 1. Direct Investment |
542.9 |
552.8 |
555.3 |
547.1 |
556.8 |
| 1.1 Equity and investment fund shares |
511.1 |
520.6 |
522.8 |
513.0 |
521.9 |
| 1.2 Debt instruments |
31.8 |
32.2 |
32.5 |
34.1 |
34.9 |
| 2. Portfolio Investment |
277.3 |
277.4 |
294.3 |
276.6 |
272.0 |
| 2.1 Equity and investment fund shares |
162.1 |
160.9 |
170.9 |
155.6 |
141.9 |
| 2.2 Debt securities |
115.2 |
116.5 |
123.4 |
121.0 |
130.1 |
| 3. Other Investment |
574.8 |
588.7 |
622.8 |
619.7 |
640.4 |
| 3.1 Trade Credits |
123.7 |
125.9 |
131.3 |
135.6 |
131.2 |
| 3.2 Loans |
221.4 |
224.6 |
239.4 |
240.6 |
250.6 |
| 3.3 Currency and Deposits |
154.8 |
160.6 |
164.1 |
165.7 |
167.6 |
| 3.4 Other Liabilities |
74.9 |
77.6 |
88.0 |
77.8 |
91.0 |
| of which: |
|
|
|
|
|
| Special drawing rights (Net incurrence of liabilities) |
21.9 |
21.8 |
22.4 |
21.6 |
22.0 |
| Memo Item: Assets to Liability ratio (%) |
74.1 |
74.1 |
76.0 |
74.8 |
77.5 |
Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised; and R: Revised.
2. The sum of the constituent items may not add to the total due to rounding off. |
| Table 2: Ratios of External Financial Assets and Liabilities to GDP |
| (per cent) |
| Period |
Mar-23 (R) |
Mar-24 (PR) |
Mar-25 (P) |
| Net IIP (A-B) |
-11.3 |
-10.1 |
-8.7 |
| A. Assets |
28.2 |
28.5 |
29.3 |
| 1. Direct Investment |
6.8 |
6.7 |
6.9 |
| 1.1 Equity and investment fund shares |
4.3 |
4.2 |
4.4 |
| 1.2 Debt instruments |
2.5 |
2.5 |
2.5 |
| 2. Portfolio Investment |
0.5 |
0.3 |
0.3 |
| 2.1 Equity and investment fund shares |
0.3 |
0.3 |
0.2 |
| 2.2 Debt securities |
0.2 |
– |
0.1 |
| 3. Other Investment |
3.2 |
3.6 |
4.8 |
| 3.1 Trade Credits |
0.8 |
0.8 |
0.8 |
| 3.2 Loans |
0.4 |
0.5 |
0.7 |
| 3.3 Currency and Deposits |
1.0 |
1.5 |
2.1 |
| 3.4 Other Assets |
1.0 |
0.8 |
1.2 |
| 4. Reserve Assets |
17.7 |
17.9 |
17.3 |
| B. Liabilities |
39.5 |
38.6 |
38.0 |
| 1. Direct Investment |
16.0 |
15.0 |
14.4 |
| 1.1 Equity and investment fund shares |
15.1 |
14.1 |
13.5 |
| 1.2 Debt instruments |
0.9 |
0.9 |
0.9 |
| 2. Portfolio Investment |
7.5 |
7.7 |
7.1 |
| 2.1 Equity and investment fund shares |
4.3 |
4.5 |
3.7 |
| 2.2 Debt securities |
3.2 |
3.2 |
3.4 |
| 3. Other Investment |
16.0 |
15.9 |
16.5 |
| 3.1 Trade Credits |
3.8 |
3.4 |
3.4 |
| 3.2 Loans |
6.2 |
6.1 |
6.5 |
| 3.3 Currency and Deposits |
4.3 |
4.3 |
4.3 |
| 3.4 Other Assets |
1.7 |
2.1 |
2.3 |
| of which: |
|
|
|
| Special drawing rights (Net incurrence of liabilities) |
0.7 |
0.6 |
0.6 |
| Table 3: Composition of International Financial Assets and Liabilities of India |
| (per cent) |
| Period |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (PR) |
Mar-25 (P) |
| A. Assets |
| 1. Direct Investment |
23.4 |
23.4 |
22.7 |
24.2 |
23.7 |
| 2. Portfolio Investment |
1.2 |
1.2 |
1.1 |
1.1 |
1.2 |
| 3. Other Investment |
12.9 |
13.4 |
13.1 |
15.8 |
16.4 |
| 4. Reserve Assets |
62.5 |
62.0 |
63.1 |
58.9 |
58.7 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| B. Liabilities |
| 1. Direct Investment |
38.9 |
39.0 |
37.7 |
37.9 |
37.9 |
| 2. Portfolio Investment |
19.9 |
19.5 |
20.0 |
19.2 |
18.5 |
| 3. Other Investment |
41.2 |
41.5 |
42.3 |
42.9 |
43.6 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| Table 4: Share of External Debt and Non-Debt Liabilities of India |
| (per cent) |
| Period |
Mar-24 (PR) |
Jun-24 (PR) |
Sep-24 (PR) |
Dec-24 (PR) |
Mar-25 (P) |
| Non-Debt Liabilities |
48.3 |
48.0 |
47.1 |
46.3 |
45.2 |
| Debt Liabilities |
51.7 |
52.0 |
52.9 |
53.7 |
54.8 |
| Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
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