Mumbai,jun 30
India’s net international investment position (IIP) improved significantly during the January-March quarter of FY2025-26, with net claims of non-residents on the country declining by USD 52.4 billion to USD 209.9 billion as of end-March 2026, according to data released by the Reserve Bank of India (RBI) on Tuesday.The improvement was driven by a USD 40.1 billion decline in foreign-owned assets in India, alongside a USD 12.3 billion increase in overseas financial assets held by Indian residents. The RBI noted that exchange rate movements, particularly the depreciation of the rupee against major currencies, also influenced the valuation of external liabilities in US dollar terms.Foreign liabilities declined mainly due to a fall in portfolio investment and direct investment in India. While inward foreign direct investment increased in rupee terms, its value declined in US dollar terms because of exchange rate depreciation, the central bank said.On the assets side, overseas direct investment accounted for more than 60 per cent of the increase in Indian residents’ overseas financial assets during the quarter, followed by reserve assets. Reserve assets continued to dominate India’s international financial assets, accounting for 57.1 per cent of the total, while overseas direct investment contributed around one-fourth.
The ratio of India’s international financial assets to international financial liabilities improved to 85.2 per cent at the end of March 2026, up from 82 per cent at the end of December 2025, reflecting a strengthening of the country’s external balance sheet.However, the share of debt liabilities in India’s total external liabilities continued to rise, reaching 56.6 per cent at the end of March 2026.
