Overseas assets of Indians during the third quarter of 2022-23 rose, mainly due to an increase of $30 billion in reserve assets, which had earlier declined by $56.5 billion in the second quarter of the current fiscal.
Reserve assets accounted for 64.3 per cent of India’s international financial assets during the third quarter of 2022-23.
According to India’s international investment position for the October-December period of the current fiscal, released by the Reserve Bank of India (RBI) on Friday, net claims of non-residents in India declined by $12 billion during October-December 2022 and stood at $374.5 billion.
The reduction in net claims was due to higher rise in Indian residents’ overseas financial assets ($28.7 billion) as compared with the increase in foreign liabilities of Indians ($16.7 billion).
Trade credits and loans were primary contributors to the rise in India’s foreign liabilities, the data stated.
Also, variation in the exchange rate of rupee vis-a-vis other currencies, impacted the change in liabilities, when valued in the US dollar terms, as the rupee depreciated by 1.49 per cent during the quarter.