ENA Sectors 2024-12-31 15:19:41 <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px"><strong>New Delhi, Dec 31 (KNN)</strong> India's net claims by non-residents declined significantly by USD 19.8 billion to reach USD 348.5 billion in September 2024, according to data released by the Reserve Bank of India on Monday. </span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">This reduction was primarily driven by a stronger increase in Indian residents' overseas financial assets compared to foreign-owned assets in India, which grew by USD 66.5 billion and USD 46.7 billion respectively during the second quarter of the current financial year.</span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">The surge in overseas financial assets was largely attributed to a substantial increase of USD 53.8 billion in reserve assets, accounting for more than 80 percent of the growth during the July-September 2024 period. </span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">On the foreign liabilities front, inward portfolio investment and loans emerged as the main contributors, collectively representing over two-thirds of the increase in foreign liabilities of Indian residents during the quarter, with portfolio investment at USD 16.5 billion and loans at USD 15.4 billion.</span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">The ratio of India's international assets to international liabilities showed improvement, rising to 76.2 percent in September 2024 from 74.1 percent in the previous quarter and 71.4 percent a year ago. </span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">However, the share of debt liabilities in total external liabilities increased to 52.7 percent in September 2024, up from 51.1 percent in the previous year.</span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">The RBI noted that exchange rate fluctuations of the rupee against other currencies influenced the valuation of liabilities when measured in US dollar terms. </span></span></p> <p><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">The net claims of non-residents, which represent the difference between assets and liabilities held by non-residents in India, continue to be a key indicator of the country's international investment position.</span></span></p> <p><em><strong><span style="font-family:Arial,Helvetica,sans-serif"><span style="font-size:14px">(KNN Bureau)</span></span></strong></em></p> 40451 https://knnindia.co.in/news/newsdetails/sectors/drop-of-usd-198-billion-in-net-claims-by-non-residents-in-q2-2024-rbi 2024-12-31 15:19:41 knnindia.co.in