Today, the Reserve Bank released data relating to India’s International Investment Position for end-September 2025[1]. Key Features of India’s IIP in end-September 2025:
- Net claims of non-residents on India declined by US$ 38.4 billion during Q2:2025-26 and stood at US$ 274.3 billion as at end-September 2025. It was a combined impact of decrease in foreign-owned assets in India (US$ 29.8 billion) and increase in Indian residents’ overseas financial assets (US$ 8.6 billion) during the quarter (Table 1).
- Accordingly, the ratio of India’s international assets to international liabilities improved to 81.3 per cent as at end-September 2025 from 79.1 per cent a quarter ago. The ratio has consistently improved from 71.4 per cent two years ago and 76.1 per cent a year ago (Chart 1 & Table 1).
- The decline of all major components of foreign-owned assets in India viz., inward portfolio investment (US$ 13.9 billion), direct investment (US$ 8.9 billion) and other investment (US$ 7.0 billion) contributed to the overall decline of foreign-owned assets in India.
- Indian residents’ overseas financial assets increased during the quarter, mainly on the back of higher outward direct investments.
- Reserve assets stood at US$ 700.1 billion as at end-September 2025 and accounted for 58.8 per cent of overseas financial assets of Indian residents (Table 2).
- The share of debt liabilities in total external liabilities increased marginally to 55.0 per cent as at end-September 2025 from 54.3 per cent a quarter ago (Table 3).
(Brij Raj)
Chief General Manager Press Release: 2025-2026/1810
Table 1: Overall International Investment Position of India |
(US$ billion) |
Period | Position as at end of |
Sep-24 (PR) | Dec-24 (PR) | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (P) |
Net IIP (A-B) | -353.4 | -364.0 | -329.1 | -312.7 | -274.3 |
A. Assets | 1124.3 | 1084.0 | 1133.9 | 1181.3 | 1189.9 |
1. Direct Investment | 254.4 | 260.8 | 270.4 | 279.4 | 287.8 |
1.1 Equity and investment fund shares | 162.4 | 166.5 | 173.5 | 179.7 | 186.1 |
1.2 Debt instruments | 92.0 | 94.3 | 96.9 | 99.7 | 101.7 |
2. Portfolio Investment | 12.4 | 12.0 | 15.4 | 16.3 | 13.4 |
2.1 Equity and investment fund shares | 11.1 | 9.2 | 10.4 | 13.1 | 9.3 |
2.2 Debt securities | 1.3 | 2.8 | 5.0 | 3.2 | 4.1 |
3. Other Investment | 151.7 | 175.5 | 179.8 | 187.5 | 188.6 |
3.1 Trade Credits | 33.0 | 33.3 | 33.7 | 33.7 | 32.2 |
3.2 Loans | 22.9 | 23.3 | 26.9 | 25.5 | 25.6 |
3.3 Currency and Deposits | 57.0 | 69.6 | 80.4 | 83.6 | 80.8 |
3.4 Other Assets | 38.8 | 49.3 | 38.8 | 44.7 | 50.0 |
4. Reserve Assets | 705.8 | 635.7 | 668.3 | 698.1 | 700.1 |
B. Liabilities | 1477.7 | 1448.0 | 1463.0 | 1494.0 | 1464.2 |
1. Direct Investment | 555.4 | 547.2 | 557.0 | 571.1 | 562.2 |
1.1 Equity and investment fund shares | 522.8 | 513.0 | 521.9 | 535.3 | 525.8 |
1.2 Debt instruments | 32.6 | 34.2 | 35.1 | 35.8 | 36.4 |
2. Portfolio Investment | 294.3 | 276.5 | 272.0 | 272.6 | 258.7 |
2.1 Equity and investment fund shares | 170.9 | 155.6 | 141.9 | 147.4 | 133.0 |
2.2 Debt securities | 123.4 | 120.9 | 130.1 | 125.2 | 125.7 |
3. Other Investment | 628.0 | 624.3 | 634.0 | 650.3 | 643.3 |
3.1 Trade Credits | 131.2 | 135.6 | 131.2 | 131.1 | 134.0 |
3.2 Loans | 239.4 | 240.6 | 250.4 | 260.2 | 258.3 |
3.3 Currency and Deposits | 164.1 | 165.7 | 167.6 | 171.8 | 168.9 |
3.4 Other Liabilities | 70.8 | 60.8 | 62.8 | 64.5 | 59.4 |
3.5 Special drawing rights (Net incurrence of liabilities) | 22.5 | 21.6 | 22.0 | 22.7 | 22.7 |
Memo Item: Assets to Liability ratio (%) | 76.1 | 74.9 | 77.5 | 79.1 | 81.3 |
Notes (applicable for all tables):
1. P: Provisional; PR: Partially Revised; and R: Revised.
2. The sum of the constituent items may not add to the total due to rounding off. |
Table 2: Composition of International Financial Assets and Liabilities of India |
(per cent) |
Period | Position as at end of |
Sep-24 (PR) | Dec-24 (PR) | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (P) |
A. Assets |
1. Direct Investment | 22.6 | 24.1 | 23.8 | 23.7 | 24.2 |
2. Portfolio Investment | 1.1 | 1.1 | 1.4 | 1.4 | 1.1 |
3. Other Investment | 13.5 | 16.2 | 15.9 | 15.8 | 15.9 |
4. Reserve Assets | 62.8 | 58.6 | 58.9 | 59.1 | 58.8 |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
B. Liabilities |
1. Direct Investment | 37.6 | 37.8 | 38.1 | 38.2 | 38.4 |
2. Portfolio Investment | 19.9 | 19.1 | 18.6 | 18.3 | 17.7 |
3. Other Investment | 42.5 | 43.1 | 43.3 | 43.5 | 43.9 |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
Table 3: Share of External Debt and Non-Debt Liabilities of India |
(per cent) |
Period | Position as at end of |
Sep-24 (PR) | Dec-24 (PR) | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (P) |
Non-Debt Liabilities | 46.9 | 46.2 | 45.4 | 45.7 | 45.0 |
Debt Liabilities | 53.1 | 53.8 | 54.6 | 54.3 | 55.0 |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
[1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-June 2025 was released in the RBI website on September 30, 2025. |
