Net claims of non-residents on India up by $11bn during Q3 FY25: RBI
Net claims of non-residents on India increased by $11 billion during the third quarter (Q3) of FY25 and stood at $364.5 billion in December 2024, as per India’s International Investment Position (IIP) data released by the Reserve Bank of India (RBI) on Friday.
Indian residents’ foreign assets declined by $40.1 billion and the claims of non-residents’ in India also declined by $29.1 billion, resulting in increase in the India net foreign liabilities.
The decline in Indian residents’ foreign assets during October-December 2024 was mainly on account of the decrease of $70.1 billion in reserve assets, according to the Central Bank.
Reserve assets, however, recorded an increase of $13.2 billion over December 2023.
“The fall in India’s foreign liabilities was due to the decline in inward direct and portfolio investments during the quarter, though trade credit, loans and currency and deposits recorded an increase,” said the Reserve Bank.
Reserve assets accounted for 59.0 per cent of India’s total international financial assets in December 2024.
“Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in the US dollar terms,” according to the RBI.
The ratio of India’s international assets to international liabilities improved to 74.7 per cent in December 2024 from 73.1 per cent a year ago.
The share of debt liabilities in total external liabilities increased to 53.6 per cent in December 2024 from 52.9 per cent a quarter ago and 51.2 per cent a year ago, said the RBI.
Meanwhile, based on an assessment of the prevailing and evolving liquidity conditions, the Reserve Bank has decided to increase the aggregate limit, made available to the Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility at the prevailing repo rate, from Rs 10,000 crore to Rs 15,000 crore, starting from April 2, 2025.
“The limit for individual SPDs is being conveyed to them separately. All other terms and conditions of the facility shall remain unchanged,” the RBI said in its statement.
