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Financial assets of Indians abroad rose by USD 18.6 bln in Sep quarter

Financial assets of Indians abroad rose by USD 18.6 bln in Sep quarter

New Delhi [India]: The financial assets of Indian residents’ abroad exhibited an increase of USD 18.6 billion in September 2017 quarter over the level in the previous quarter, according to the data released by Reserve Bank of India (RBI) relating to India’s international investment position (IIP) on Friday.

A substantial portion of this rise came from an increase in the reserve assets, RBI said.

Reserve assets had over two-thirds share in India’s international assets, followed by overseas direct investment.

RBI also stated that the net claims of non-residents on India declined by USD 1.9 billion over the previous quarter due to the higher increase in Indian residents’ overseas financial assets as compared with foreign-owned assets in India.

Foreign-owned assets in India increased by USD 16.7 billion during the quarter, RBI release stated pointing out that it is mainly due to rise in foreign direct investment (FDI), trade credit and portfolio investment in debt securities.

Overseas investment in portfolio equity, however, declined during the quarter.

The ratio of India’s international financial assets to international financial liabilities stood at 59.5 percent in September 2017 as compared to 58.6 percent in June-2017, RBI added. (ANI)