Net claims by non-residents up at $332 bn

Jun 30 2014, 21:38 IST
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SummaryThe difference between an economy's external financial assets and liabilities is its net IIP.

Net claims by non-residents on India increased to USD 331.6 billion as on March 31 -- up USD 12.8 billion from the previous quarter.

The increase in claims largely reflected valuation effects, the Reserve Bank today said in a release on 'India's International Investment Position (IIP), March 2014'.

The difference between an economy's external financial assets and liabilities is its net IIP.

"This change in the net position reflected a USD 37.8 billion increase in the value of foreign-owned assets in India vis-a-vis a USD 24.9 billion increase in the value of Indian residents’ financial assets abroad," RBI said.

Foreign-owned assets increased by USD 37.8 billion over the previous quarter to USD 814.8 billion, mainly on increase of USD 16.1 billion in direct investment in India and an increase of USD 13.4 billion in portfolio investment.

Among other investment liabilities, loans (mainly external commercial borrowings) increased by USD 7.5 billion and trade credits declined by USD 4.5 billion.

Assets of Indian residents abroad rose by USD 24.9 billion from previous quarter to USD 483.2 billion mainly due to increase of USD 10.3 billion reserve assets and USD 8.9 billion direct investment abroad.

In terms of annual variations, international financial assets abroad increased by USD 35.4 billion, to USD 483.2 billion as on March 31, 2014.

"These included increase of USD 9.2 billion in direct investment abroad and USD 12.1 billion in reserve assets," RBI said.

Also, international financial liabilities increased by USD 40.3 billion on a year-on-year basis to USD 814.8 billion.

"As a result of the...changes in external assets and liabilities, net claims of non-residents on India increased by USD 4.9 billion as at end-March 2014, on a year-on-year basis," RBI said.

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