India recorded a notable expansion in its overseas financial assets during the financial year 2024–25, largely driven by stronger overseas direct investments, higher holdings in currency and deposits, and a rise in reserve assets, according to the latest data released by the Reserve Bank of India (RBI).
More than 72 per cent of the total increase in India’s foreign financial assets came from these three components, with reserve assets alone contributing over half the growth. The central bank noted that currency and deposits, along with direct investments abroad, also made significant contributions to this expansion.
“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,” the RBI said.
In absolute terms, India’s total external financial assets rose by USD 105.4 billion during FY25. By contrast, the country’s external financial liabilities increased by USD 74.2 billion. This resulted in net claims of non-residents on India declining by USD 31.2 billion over the year.
The RBI report pointed out that this decline was largely due to a sharper increase in Indian residents’ overseas financial assets—up by USD 60.0 billion—compared to the rise in foreign-owned assets in India, which stood at USD 25.8 billion during the January–March 2025 quarter.
Reflecting this trend, the ratio of India’s international financial assets to its international financial liabilities improved to 77.5 per cent in March 2025, up from 74.1 per cent a year earlier. This indicates a strengthening of India’s external financial position, offering greater stability in the country’s balance of payments.
On the liability side, inward direct investments, loans, and currency and deposits remained key drivers. Inward direct investment and loans together made up more than three-fourths of the rise in foreign liabilities of Indian residents in the January–March 2025 period. Loans increased by USD 10.0 billion, while inward direct investments rose by USD 9.7 billion during the quarter.
-ANI