India's net international investment position (IIP) or the difference between external financial assets and liabilities, has marginally improved to USD 361.5 billion at the end of March, 2016, according to the latest data from the Reserve Bank of India.
Provisional figures for March quarter released today said the net claims of non-residents on India, as reflected in the net IIP, came down to USD 361.5 billion from USD 362.1 billion in the preceding quarter and from USD 364.6 billion a year ago.
This was largely on the back of the value of residents' financial assets abroad growing at a faster clip of USD 17.5 billion during the reporting period as against a USD 16.9 billion increase in the value of foreign-owned assets in the country, the RBI said.
RBI said such a balance-sheet analysis of international accounts is an important input for understanding external sustainability and vulnerability, and is also useful in analysing the economic structure.
The residents' financial assets abroad, which stood at USD 550.3 billion as of end March, grew largely on the back of a USD 9.8 billion increase in the reserve assets and a USD 3.6 billion jump in currency and deposits, it said, adding however, the trade credit assets declined by USD 1.6 billion during the quarter.
The overall foreign-owned assets in the country increased by USD 16.9 billion during the reporting period to USD 911.8 billion mainly due to an increase in direct and other investments in the country by USD11.3 billion and USD 6.1 billion, respectively.
The ratio of the country's international financial assets to international financial liabilities stood at 60.4 per cent in March 2016, the RBI said.
