Net claims of non-residents in India, as reflected by the net international investment position (international assets ? international liabilities) at the end of December 2009, increased by $ 21.2 billion to $ 117.1 billion from $ 96.0 billion on September 2009, mainly due to increase in net inflow of direct investment and portfolio investment into India The total external financial assets increased by $ 7.0 billion to $385.9 billion at the end of December 2009 over the previous quarter.
Among the components of external financial assets, direct investment abroad moved up by $ 3.2 billion, over September 2009 to $77.3 billion as on December 2009. Trade credits, a component of other investment, improved by $2.5 billion to $5.7 billion during the same period.The reserve assets i.e. official reserves (foreign currency assets, IMF reserve position, SDRs, Gold) improved $2.2 billion over the previous quarter and stood at $283.5 billion at the end of December 2009.
The total external financial liabilities increased by $ 28.2 billion over the previous quarter and stood at $ 503 billion at the end of December 2009. Direct investment and portfolio investment in India increased $11.8 billion and $11.2 billion to $164.2 billion and $117.2 billion respectively over the previous quarter. Among the other investment items, trade credits, currency and deposits and loans was up $2.3 billion, $ 1.5 billion and $ 1.3 billion respectively over the previous quarter. Net claim of non-residents on India as reflected by the net IIP as at end-December 2009, increased by $ 33.0 billion over the year, primarily due to increase in net inflow of direct investment and equity portfolio investment The total external financial assets increased by $ 52.0 billion on December 2009 over December 2008.