Net claims of non-residents on India declined modestly

Reserve Bank of India or RBI stated that net claims of non-residents on India declined by US$ 10.9 billion from end-September 2025 and stood at US$ 260.5 billion as at end-December 2025, driven by relatively higher rise in Indian residents’ overseas financial assets (US$ 12.8 billion) as compared to increase in the foreign-owned assets in India (US$ 1.9 billion).

Accordingly, the ratio of India’s international assets to international liabilities continued to improve to 82.1 per cent as at end-December 2025 from 81.4 per cent in the previous quarter and 74.6 per cent a year ago. Indian residents’ overseas financial assets increased during the quarter, primarily led by rise in outward direct investments (US$ 7.6 billion) and currency and deposits (US$ 9.4 billion). Reserve assets, accounting for 57.4 per cent share in the total overseas financial assets of Indian residents, declined by US$ 12.4 billion from the previous quarter and stood at US$ 687.7 billion as at end-December 2025. However, on annual basis, it rose by 8.2 per cent.

On liability side, decline in inward direct investment (US$ 3.2 billion) and portfolio investment (US$ 2.8 billion) was offset by increase in trade credit (US$ 11.4 billion) under other investment, resulted in marginal sequential increase (0.1 per cent) in foreign-owned assets in India as on end-December 2025. With the decline in equity investment along with the rise in debt investment, the share of debt liabilities in total external liabilities increased to 55.3 per cent as at end-December 2025 from 54.8 per cent a quarter ago.

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