India’s international financial liabilities increased by $10.5 billion to $723.9 billion in the third quarter of the current fiscal, Reserve Bank of India said in a statement.
In the October-December period, international financial assets of Indian citizens remained unchanged at $441.9 billion.
Hence, the difference between international financial assets and liabilities reflecting the country’s international investment position increased by $10.4 billion to $282 billion.
This means non-residents had a claim of $282 billion on India as on December 31.
International investment position is a statistical statement that shows the value and the composition of financial assets of residents of an economy and liabilities of residents of an economy to non-residents.
Such balance sheet analysis of international accounts helps in understanding sustainability and vulnerability of the economy, RBI said.
The changes in international investment position of a country also reflect the valuation changes emanating from exchange rate movements.
Reserve Assets continued to have the dominant share (about 67 per cent or $295.6 billion) in India’s international financial assets in December 2012, followed by direct investment abroad at about 27 per cent.
Direct investment (with share of 31.3 per cent), portfolio investment (23.4 per cent), and loans (mainly External Commercial Borrowings) (22.9 per cent) were the major constituents of the country’s financial liabilities.