New Delhi:
Overseas financial assets of Indian residents fell $43.9 billion in July-September 2022 due to reserve reductions even as trade credit, currency and deposits, and foreign direct investment increased, Reserve Bank of India (RBI) said in its India’s International Investment Position (IIP), September 2022 Report Released Today. The reduction in non-resident financial assets in India was relatively lower at $9.6 billion.
According to the report, net non-resident claims on India increased by $34.3 billion in the second quarter (Q2) of 2022-23 and stood at $389.6 billion in September 2022.
Reserve assets remained the dominant component with a 62.9 percent share of India’s international financial assets. It was down $56.5 billion in July-September 2022, where valuation losses were a big part.
The decline in India’s foreign liabilities in the second quarter of 2022-2023 was mainly attributed to (net) direct investment outflows, portfolio and other investment also registered a marginal decrease on a net basis, apart from trade credit which increased by $5.1 billion increased. Fluctuations in the exchange rate of the rupee against other currencies also affected the change in liabilities valued in US dollars, it further said.
Debt and non-debt obligations continued to have an equal share of total external liabilities. The ratio of international assets to international liabilities decreased to 68.5 percent in September 2022, from 71.5 percent a quarter ago.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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