The obligation as measured by net claims of non-residents on India decreased to $260.5 billion at end-December 2025. This was driven by a relatively higher rise in Indian residents’ overseas financial assets ($12.8 billion) as compared to increase in the foreign-owned assets in India ($1.9 billion), Reserve Bank of India said.
Net claims is the difference between total foreign-owned assets in India and Indian-owned assets abroad.
Accordingly, the ratio of India’s international assets to international liabilities improved to 82.1% as at end-December 2025 from 81.45 three months prior to that. The ratio was at 74.6% a year ago.
Indian residents’ overseas financial assets increased during the quarter, primarily led by a rise in outward direct investments of $7.6 billion and currency and deposits of $9.4 billion, the central bank data showed.
Reserve assets, which accounted for 57.4% share in the total overseas financial assets of Indian residents, declined by $12.4 billion from the previous quarter to $687.7 billion at the end of the reporting period. However, on an annual basis, it rose by 8.2%.
On the liability side, a dip in inward direct investment ($3.2 billion) and portfolio investment ($2.8 billion) was offset by rise in trade credit ($11.4 billion) under other investments.With the decline in equity investment along with the rise in debt investment, the share of debt liabilities in total external liabilities increased to 55.3% 5 as at end-December 2025 from 54.8% a quarter ago.