Over 72% growth in India's overseas financial assets was due to investment, currency & deposits: RBI
New Delhi: India witnessed a strong increase in its overseas financial assets during the financial year 2024-25, mainly driven by higher overseas direct investments, currency and deposits, and reserve assets, according to the latest data released by the Reserve Bank of India (RBI).
The data also highlighted that more than 72 per cent of the total growth in India's foreign financial assets came from these three components, with reserve assets alone accounting for over 54 per cent of the increase.
Currency and deposits, along with direct investments, also contributed significantly to the overall growth in overseas assets held by Indian residents.
RBI stated, "Over 72 per cent of the rise in India's overseas financial assets was due to an increase in overseas direct investment, currency and deposits."
During 2024-25, India's total external financial assets grew by USD 105.4 billion. In comparison, its external financial liabilities increased by USD 74.2 billion. As a result, the net claims of non-residents on India declined by USD 31.2 billion during the year.
The RBI report also noted that this decline in net claims was mainly due to a higher rise in Indian residents' overseas financial assets (USD 60.0 billion) than the increase in foreign-owned assets in India (USD 25.8 billion) in the January-March 2025 quarter.
The ratio of India's international financial assets to international financial liabilities improved to 77.5 per cent in March 2025, compared to 74.1 per cent a year earlier. This indicates a stronger external financial position for the country.
On the liability side, inward direct investments, loans, and currency and deposits played a major role. In fact, inward direct investment and loans together accounted for over three-fourths of the rise in foreign liabilities of Indian residents during the January-March 2025 period.
Loans increased by USD 10.0 billion, while inward direct investments went up by USD 9.7 billion during the quarter.
Overall, the data also showed a healthy improvement in India's international investment position, supported by strong asset creation abroad and a moderate increase in liabilities.
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