Non-resident claims on India up $26.3-bn as foreign investments hit $1,037.3 bn in Dec

Net claims of non-residents on India increased by $26.3 billion as of end-December 2017 compared to the previous quarter, Reserve Bank data on India’s international investment position (IIP) released today showed.

Foreign-owned assets in India surged by $38.6 billion from $998.7  billion to $1,037.3 billion during the quarter, with broad-based contribution from foreign direct investment (FDI), portfolio investment, currency and deposits as well as trade credit. Outstanding commercial loans, however, declined marginally during the quarter.
Overseas assets held by Indian residents increased by $12.3 billion (from $595.3 billion to $607.6 billion) over the level in the previous quarter, a substantial portion of which came from increase in the reserve assets.
Appreciation of Indian rupee against the US dollar (by 2.2 per cent) during the quarter partly explained the increase in India’s liabilities when valued in US dollar terms.
While reserve assets accounted for over two-thirds of India’s international assets, debt and non-debt liabilities had an almost equal share in total liabilities.
The ratio of India’s international financial assets to international financial liabilities stood at 58.6 per cent at end-December 2017 (59.6 per cent a quarter ago).