NRI claims rise to $352.7B in March

Net claims of non-residents in India increased by $11.2 billion during the Q4FY21 to $352.7 billion due to larger increase in foreign-owned assets as compared to the overseas financial assets of Indians.

The foreign owned assets in India increased by $17.9 billion in Q4 of the last fiscal, much higher than overseas financial assets of the Indian residents at $6.7 billion during the quarter.

As per India Investment Position (IIP) report of the Reserve Bank of India (RBI), Indian residents' overseas financial assets abroad increased largely on the back of the increase in overseas direct investment as well as currency and deposits.

Inward portfolio investment and loans were major contributors to the rise in India's foreign liabilities, the report said. Depreciation of the Indian rupee against the US dollar during the quarter contributed to changes in India's liabilities, when valued in the dollar terms.

Reserve assets accounted for over two-thirds of India's international financial assets while non-debt liabilities had 52.4 per cent share in India's external liabilities, according to the report. On an annual basis (April-March 2020-21), non-residents' net claims on India reduced by $22.7 billion. Increase in overseas assets of the Indian residents ($ 141.2 billion) exceeded the rise in foreign owned assets in India ($118.5 billion) during the year.

The increase in international financial assets of the Indian residents was led by a large accretion of $99.2 billion in reserve assets; overseas direct investment and currency and deposits were the other major components, the report said.