The Reserve Bank released data relating to India's International Investment Position at end-September 2019. Net claims of non-residents on India declined by US$ 14.8 billion during July-September 2019. The decline in net claims was due to an increase of US$ 7.4 billion in Indian residents' overseas financial assets and a reduction in foreign-owned assets in India by US $ 7.4 billion during the quarter.
The decline in foreign-owned assets in India was mainly due to reduction in portfolio equity investment. Depreciation of the Indian rupee against the US dollar during the quarter contributed to the reduction in India's liabilities, when valued in US dollar terms.
Increase in reserve assets, currency and deposits as well as overseas direct investments resulted in higher foreign assets of Indian residents. Reserve assets accounted for nearly 65 per cent of total foreign assets. The share of debt liabilities in total liabilities increased marginally to 51.0 per cent in September 2019 from 50.6 per cent a quarter ago.
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