India saw a sharp decline in net claims by non-residents during the fourth quarter of FY25, with the figure dropping by $34.2 billion to stand at $330 billion as of March-end, according to data released by the Reserve Bank of India (RBI) on Friday.

This decline was driven primarily by a stronger rise in Indian residents’ overseas financial assets, which surged by $60 billion, significantly outpacing the $25.8 billion increase in foreign-owned assets in India. The data is part of India’s International Investment Position (IIP) for the quarter ended March 2025.

The RBI noted that over 54% of the increase in overseas financial assets was attributed to higher reserve assets, followed by gains in currency and deposits, and direct investments. On the liabilities side, foreign loans and inward direct investments contributed the most—together accounting for over 75% of the $25.8 billion rise.

India’s reserve assets continued to dominate the country’s international financial assets, making up 58.7% of the total. Additionally, the ratio of India’s international financial assets to liabilities improved to 77.5% in March 2025, up from 74.8% in the previous quarter.

For the full financial year 2024–25, net claims of non-residents on India declined by $31.2 billion. This was due to a higher rise in India’s external financial assets ($105.4 billion) compared to its external liabilities ($74.2 billion). Nearly 72% of this growth in assets came from increased overseas direct investment, currency and deposits, and reserve assets.

Meanwhile, debt liabilities as a proportion of total external liabilities rose during the March quarter, reaching 54.8%, according to the RBI data. The annual increase in India’s asset-to-liability ratio—from 74.1% in March 2024 to 77.5% in March 2025—highlights a further strengthening of the country’s external balance sheet.