India?s external financial position improves in FY2025-26
At the end of March 2026, net claims of non-residents on India declined by US$ 52.4 billion to US$ 209.9 billion during the January-March quarter. The improvement was driven by a US$ 40.1 billion decline in foreign-owned assets in India and a US$ 12.3 billion increase in Indian residents? overseas financial assets. Exchange rate movements also affected the value of liabilities in US dollar terms.
During FY2025-26, net claims of non-residents fell by US$ 119.2 billion, reflecting a US$ 42.8 billion decline in external financial liabilities and a US$ 76.4 billion increase in India?s overseas financial assets. The rise in overseas assets was mainly led by higher overseas direct investment and reserve assets, while lower portfolio and direct investment by non-residents reduced India?s external liabilities.
The ratio of India?s international financial assets to liabilities improved to 85.2% in March 2026, up from 82.0% a quarter earlier and 77.5% a year ago. Reserve assets accounted for 57.1% of India?s international financial assets, while debt liabilities made up 56.6% of total external liabilities. The ratio of net claims of non-residents to GDP improved to (-)5.9% from (-)9.0% a year earlier.
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