Net claims of non-residents on India declined by $12.2 billion during October-December 2023 to $370.4 billion as at end-December 2023, data released by the Reserve Bank of India (RBI) showed.

“The decline in net claims was due to the higher rise in Indian residents’ overseas financial assets ($40.7 billion) as compared to the increase in foreign-owned assets in India ($28.5 billion),” the RBI said. 

Reserve assets recorded a significant rise ($34.8 billion) and accounted for over 85% of increase in foreign assets of Indian residents during Q3 FY24.

“The rise in India’s foreign liabilities was attributed to higher inward direct investments, portfolio investments and loans taken by resident entities; even as trade credits recorded a marginal decline,” the RBI said.

Reserve assets accounted for 63.9% of India’s international financial assets. The share of debt liabilities in total external liabilities remained at its level a quarter ago (50.4%). The ratio of India’s international financial assets to international financial liabilities improved to 72.4% in December 2023 from 70.9% a quarter ago, as per RBI data.