As per India’s central bank, Reserve Bank of India’s recent document on India’s International Investment Position as of March-end 2021, the Net claims of non-residents on India rise to $352.7bn in March.
”The increase in net claims was due to larger increase in foreign-owned assets in India ($17.9bn) vis-a-vis the overseas financial assets of Indian residents ($6.7bn) during the quarter,” the RBI document said.
The rise in net claims is mainly due to “an increase in foreign-owned assets in the country compared to the overseas financial assets of Indian residents.”
The major contributors behind this rise in the foreign liabilities of India’s foreign liabilities are depreciation of Indian Rupee against US Dollar during the quarter, investment in inward portfolios, and loans.
“On annual variations during 2020-21, non-residents’ net claims on India reduced by $ 22.7 billion. The increase in overseas assets of Indian residents ‑ $141.2bn – exceeded the rise in foreign-owned assets in India — $118.5 bn.