RBI Data: Overseas Assets Improve, Claims Decrease

India’s Net External Liabilities Narrow to $260.5 Billion in Q3 FY26: RBI Data​

Overseas Asset Growth Outpaces Foreign Investment Inflows​

Mumbai, March 30: India’s net claims of non-residents declined to USD 260.5 billion as of end-December 2025, marking a reduction of USD 10.9 billion from the previous quarter, according to data released by the Reserve Bank of India on Monday.

The decline was primarily driven by a stronger increase in overseas financial assets held by Indian residents compared to the rise in foreign-owned assets within the country.

International Investment Position Shows Continued Improvement​

The ratio of India’s international assets to liabilities improved further to 82.1 percent at the end of December 2025. This compares with 81.4 percent in the preceding quarter and 74.6 percent in the same period a year earlier, indicating a steady strengthening of the country’s external balance sheet.

The data forms part of the RBI’s latest release on India’s International Investment Position.

Rise in Outward Investments and Deposits Boost Overseas Assets​

During the quarter, Indian residents’ overseas financial assets increased by USD 12.8 billion. This growth was largely supported by:

• Outward direct investments, which rose by USD 7.6 billion
• Currency and deposits, which increased by USD 9.4 billion

However, reserve assets saw a decline of USD 12.4 billion on a sequential basis, bringing the total to USD 687.7 billion as of end-December 2025. Despite the quarterly dip, reserve assets recorded an annual growth of 8.2 percent.

Reserve assets continued to account for a significant 57.4 percent share of India’s total overseas financial assets.

Foreign-Owned Assets See Marginal Increase​

On the liabilities side, foreign-owned assets in India registered a marginal increase of 0.1 percent during the quarter.

The RBI noted that declines in:

• Inward direct investment by USD 3.2 billion
• Portfolio investment by USD 2.8 billion

were offset by a rise in trade credit amounting to USD 11.4 billion under the category of other investments.

Debt Share in External Liabilities Edges Higher​

With a reduction in equity investments and a simultaneous increase in debt components, the share of debt liabilities in India’s total external liabilities rose to 55.3 percent as of end-December 2025, up from 54.8 percent in the previous quarter.

This shift reflects a changing composition of India’s external liabilities during the period under review.