(MENAFN- KNN India) New Delhi, Dec 31 (KNN) India's net claims by non-residents declined significantly by USD 19.8 billion to reach USD 348.5 billion in September 2024, according to data released by the Reserve Bank of India on Monday.

This reduction was primarily driven by a stronger increase in Indian residents' overseas financial assets compared to foreign-owned assets in India, which grew by USD 66.5 billion and USD 46.7 billion respectively during the second quarter of the current financial year.

The surge in overseas financial assets was largely attributed to a substantial increase of USD 53.8 billion in reserve assets, accounting for more than 80 percent of the growth during the July-September 2024 period.

On the foreign liabilities front, inward portfolio investment and loans emerged as the main contributors, collectively representing over two-thirds of the increase in foreign liabilities of Indian residents during the quarter, with portfolio investment at USD 16.5 billion and loans at USD 15.4 billion.

The ratio of India's international assets to international liabilities showed improvement, rising to 76.2 percent in September 2024 from 74.1 percent in the previous quarter and 71.4 percent a year ago.

However, the share of debt liabilities in total external liabilities increased to 52.7 percent in September 2024, up from 51.1 percent in the previous year.

The RBI noted that exchange rate fluctuations of the rupee against other currencies influenced the valuation of liabilities when measured in US dollar terms.

The net claims of non-residents, which represent the difference between assets and liabilities held by non-residents in India, continue to be a key indicator of the country's international investment position.

(KNN Bureau)

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