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Key Points

India's overseas financial assets saw a significant 72% growth, led by investments and currency deposits. Reserve assets alone accounted for over half of this increase. The country's net external liabilities declined, strengthening its financial position. The RBI highlighted improved asset-to-liability ratios, signaling economic resilience.

Key Points: RBI Reports 72% Growth in India's Overseas Financial Assets

  • India's external assets grew by $105.4 billion in FY 2024-25
  • Reserve assets contributed 54% of the total growth
  • Net foreign claims on India declined by $31.2 billion
  • External financial position improved to 77.5% in March 2025
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Over 72% growth in India's overseas financial assets was due to investment, currency & deposits: RBI

India's foreign financial assets surged by 72%, driven by investments, currency deposits, and reserve assets, as per RBI data.

"Over 72% of the rise in India’s overseas financial assets was due to an increase in overseas direct investment, currency and deposits. – RBI"

New Delhi, June 30

India witnessed a strong increase in its overseas financial assets during the financial year 2024-25, mainly driven by higher overseas direct investments, currency and deposits, and reserve assets, according to the latest data released by the Reserve Bank of India (RBI).

The data also highlighted that more than 72 per cent of the total growth in India's foreign financial assets came from these three components, with reserve assets alone accounting for over 54 per cent of the increase.

Currency and deposits, along with direct investments, also contributed significantly to the overall growth in overseas assets held by Indian residents.

RBI stated, "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."

During 2024-25, India's total external financial assets grew by USD 105.4 billion. In comparison, its external financial liabilities increased by USD 74.2 billion. As a result, the net claims of non-residents on India declined by USD 31.2 billion during the year.

The RBI report also noted that this decline in net claims was mainly due to a higher rise in Indian residents' overseas financial assets (USD 60.0 billion) than the increase in foreign-owned assets in India (USD 25.8 billion) in the January-March 2025 quarter.

The ratio of India's international financial assets to international financial liabilities improved to 77.5 per cent in March 2025, compared to 74.1 per cent a year earlier. This indicates a stronger external financial position for the country.

On the liability side, inward direct investments, loans, and currency and deposits played a major role. In fact, inward direct investment and loans together accounted for over three-fourths of the rise in foreign liabilities of Indian residents during the January-March 2025 period.

Loans increased by USD 10.0 billion, while inward direct investments went up by USD 9.7 billion during the quarter.

Overall, the data also showed a healthy improvement in India's international investment position, supported by strong asset creation abroad and a moderate increase in liabilities.

- ANI

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Reader Comments

P
Priya S
While the numbers look impressive, I wonder how much of this benefits common citizens? The article mentions reserve assets grew most - does this mean our forex reserves are stronger? That's good for rupee stability at least.
A
Aditya G
As someone in finance, these stats are very encouraging! The improvement in assets-to-liabilities ratio from 74.1% to 77.5% shows real progress. But we must ensure this growth is sustainable and not just short-term gains.
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Shreya B
Good to see Indian companies going global, but RBI should also focus on domestic investments. Our infrastructure needs so much funding. Can't we balance both international and local growth better?
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Michael C
Interesting data! The USD 31.2 billion decline in net claims shows India is becoming less dependent on foreign capital. This could give more policy flexibility to the government in coming years.
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Nisha Z
The numbers look good on paper, but I hope RBI is monitoring where these overseas investments are going. We don't want another situation like some past failed foreign acquisitions by Indian companies. Caution is key!

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