New Delhi [India], September 30 (ANI): Net claims of non-residents in India increased by USD 16.5 billion during Q1 FY26-27 to USD 220.3 billion as at the end of June 2026. The expansion in net claims reflects an increase in the country's external obligations alongside a reduction in international assets held abroad.

The Reserve Bank of India said, 'Net claims of non-residents on India increased by USD 16.5 billion during Q1:2026-27 to USD 220.3 billion as at end-June 2026, mainly due to an increase in external liabilities by USD 11.6 billion and a decline of USD 4.9 billion in the foreign-owned assets.'

Total international financial assets stood at USD 1,212.5 billion at the end of June 2026, down from USD 1,217.4 billion at the end of March 2026. Over the same period, total external liabilities increased from USD 1,421.2 billion to USD 1,432.8 billion.

This movement across external balance sheets also led to a downward change in the asset-to-liability coverage over the quarter.

'Accordingly, the ratio of India's international assets to international liabilities moderated to 84.6 per cent in June 2026 from 85.7 per cent a quarter ago,' the central bank noted.

The expansion in foreign liabilities occurred as distinct investment components moved in opposite directions, with fresh capital injections offsetting foreign equity outflows.

'Rise in foreign liabilities of Indian residents was mainly on account of increased direct investment (USD 15.7 billion) and other investment (USD 4.2 billion) compensating for the decline in portfolio equity investments (USD 14 billion),' the RBI stated.

Foreign direct investment liabilities rose to USD 560.9 billion from USD 545.2 billion in March 2026. Portfolio equity investments dropped from USD 109.3 billion to USD 95.3 billion, whereas portfolio debt securities rose from USD 123.0 billion to USD 128.7 billion. Within other investment liabilities, trade credits accounted for USD 148.4 billion and foreign loans stood at USD 267.0 billion.

On the asset side, foreign exchange reserves remained the primary buffer for external finances.

'Reserve assets accounted for 55.1 per cent of India's international financial assets while overseas direct investment accounted for over one-fourth share,' the RBI added.

Reserve assets declined to USD 668.6 billion at the end of June 2026 from USD 691.1 billion at the end of March 2026. Direct investment abroad increased to USD 316.1 billion, representing 26.1 per cent of overall international assets.

'The share of debt liabilities in total external liabilities increased gradually during the recent quarters and stood at 56.9 per cent as on end-June 2026,' the RBI said.

Consequently, the share of non-debt liabilities settled at 43.1 per cent at the close of the quarter, down from 43.4 per cent in March 2026. (ANI)