Today, the Reserve Bank released data relating to India’s International Investment Position for end-March 2026[1]. Key Features IIP during Q4:2025-26 (January-March 2026):
- Net claims of non-residents on India declined by US$ 52.4 billion during Q4:2025-26 to US$ 209.9 billion as at end-March 2026, driven by decline in the foreign-owned assets (US$ 40.1 billion) in India along with the rise in Indian residents’ overseas financial assets (US$ 12.3 billion) (Table 1).
- Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in US dollar terms.
- Decline in foreign liabilities of Indian residents was mainly attributed to the decline in portfolio investment and direct investment in India; increase in inward direct investment measured in rupee terms was outweighed by exchange rate depreciation, resulting in fall in its value in US dollar term.
- Increase in foreign direct investment accounted for more than 60 per cent of the rise in Indian residents’ overseas financial assets during the quarter Q4:2025-26 (January-March 2026), followed by reserve assets.
- Reserve assets accounted for 57.1 per cent of India’s international financial assets while overseas direct investment accounted for one fourth share (Table 2).
- The ratio of India’s international assets to international liabilities increased to 85.2 per cent in March 2026 from 82.0 per cent a quarter ago (Chart 1 & Table 1).
- The share of debt liabilities in total external liabilities increased gradually during the recent quarters and stood at 56.6 per cent as on end-March 2026 (Table 3).
IIP during FY:2025-26 (April-March):
- During FY 2025-26, the net claims of non-residents declined by US$ 119.2 billion, due to decline in external financial liabilities (US$ 42.8 billion), on the back of depreciation of rupee vis-a-vis US Dollar, alongside rise in Indian residents’ overseas financial assets by US $ 76.4 billion (Table 1).
- The rise in India’s overseas financial assets during 2025-26 is mainly driven by increase in overseas direct investment and reserve assets.
- Fall in portfolio investment and direct investment by non-residents resulted in decline in foreign liabilities of India during the year.
- The ratio of India’s international financial assets to international financial liabilities increased to 85.2 per cent in March 2026 from 77.5 per cent a year ago (Chart 1 & Table 1).
Ratio of International Financial Assets and Liabilities to Gross Domestic Product (GDP):
- As a ratio to GDP (at current market prices), residents’ overseas financial assets recorded improvement while, external financial liabilities moderated during FY 2025-26 (Table 4).
- As a result, the ratio of net claims of non-residents on India to GDP improved significantly to (-)5.9 per cent in March 2026 from (-)9.0 per cent a year ago.
(Brij Raj)
Chief General Manager Press Release: 2026-2027/569
Table 1: Overall International Investment Position of India |
(US$ billion) |
Period | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (PR) | Dec-25 (PR) | Mar-26 (P) |
Net IIP (A-B) | -329.1 | -312.5 | -271.0 | -262.3 | -209.9 |
A. Assets | 1134.0 | 1177.3 | 1185.5 | 1198.1 | 1210.4 |
1. Direct Investment | 270.5 | 279.6 | 289.2 | 296.9 | 304.3 |
1.1 Equity and investment fund shares | 173.6 | 179.8 | 187.5 | 193.6 | 199.1 |
1.2 Debt instruments | 96.9 | 99.8 | 101.7 | 103.3 | 105.2 |
2. Portfolio Investment | 15.4 | 16.3 | 16.6 | 16.5 | 17.8 |
2.1 Equity and investment fund shares | 10.3 | 13.1 | 12.5 | 10.1 | 7.6 |
2.2 Debt securities | 5.1 | 3.2 | 4.1 | 6.4 | 10.2 |
3. Other Investment | 179.8 | 183.3 | 179.6 | 197.0 | 197.2 |
3.1 Trade Credits | 33.7 | 33.7 | 31.9 | 34.2 | 30.9 |
3.2 Loans | 27.0 | 25.6 | 25.8 | 26.8 | 26.9 |
3.3 Currency and Deposits | 80.4 | 83.6 | 80.8 | 90.2 | 89.8 |
3.4 Other Assets | 38.7 | 40.4 | 41.1 | 45.8 | 49.6 |
4. Reserve Assets | 668.3 | 698.1 | 700.1 | 687.7 | 691.1 |
B. Liabilities | 1463.1 | 1489.8 | 1456.5 | 1460.4 | 1420.3 |
1. Direct Investment | 556.9 | 571.2 | 562.0 | 559.0 | 543.3 |
1.1 Equity and investment fund shares | 521.9 | 535.4 | 525.7 | 522.1 | 506.1 |
1.2 Debt instruments | 35.0 | 35.8 | 36.3 | 36.9 | 37.2 |
2. Portfolio Investment | 272.0 | 272.6 | 258.7 | 255.9 | 233.4 |
2.1 Equity and investment fund shares | 141.9 | 147.4 | 133.0 | 130.1 | 110.4 |
2.2 Debt securities | 130.1 | 125.2 | 125.7 | 125.8 | 123.0 |
3. Other Investment | 634.2 | 646.0 | 635.8 | 645.5 | 643.6 |
3.1 Trade Credits | 131.2 | 131.1 | 135.0 | 148.3 | 144.9 |
3.2 Loans | 250.6 | 260.3 | 258.6 | 259.9 | 264.9 |
3.3 Currency and Deposits | 167.6 | 171.7 | 168.9 | 173.9 | 170.3 |
3.4 Other Liabilities | 62.8 | 60.2 | 50.6 | 40.7 | 41.1 |
3.5 Special drawing rights (Net incurrence of liabilities) | 22.0 | 22.7 | 22.7 | 22.7 | 22.4 |
Memo Item: Assets to Liability ratio (%) | 77.5 | 79.0 | 81.4 | 82.0 | 85.2 |
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 | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (PR) | Dec-25(PR) | Mar-26 (P) |
A. Assets |
1. Direct Investment | 23.8 | 23.7 | 24.4 | 24.8 | 25.1 |
2. Portfolio Investment | 1.4 | 1.4 | 1.4 | 1.4 | 1.5 |
3. Other Investment | 15.9 | 15.6 | 15.1 | 16.4 | 16.3 |
4. Reserve Assets | 58.9 | 59.3 | 59.1 | 57.4 | 57.1 |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
B. Liabilities |
1. Direct Investment | 38.1 | 38.3 | 38.6 | 38.3 | 38.3 |
2. Portfolio Investment | 18.6 | 18.3 | 17.8 | 17.5 | 16.4 |
3. Other Investment | 43.3 | 43.4 | 43.6 | 44.2 | 45.3 |
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 | Mar-25 (PR) | Jun-25 (PR) | Sep-25 (PR) | Dec-25 (PR) | Mar-26 (P) |
Non-Debt Liabilities | 45.4 | 45.8 | 45.2 | 44.7 | 43.4 |
Debt Liabilities | 54.6 | 54.2 | 54.8 | 55.3 | 56.6 |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
Table 4: Ratios of External Financial Assets and Liabilities to GDP (nominal) |
(per cent) |
Period | Mar-24 (R) | Mar-25 (PR) | Mar-26 (P) |
Net IIP (A-B) | -10.5 | -9.0 | -5.9 |
A. Assets | 29.7 | 30.4 | 32.9 |
1. Direct Investment | 7.0 | 7.3 | 8.3 |
1.1 Equity and investment fund shares | 4.4 | 4.7 | 5.4 |
1.2 Debt instruments | 2.6 | 2.6 | 2.9 |
2. Portfolio Investment | 0.3 | 0.4 | 0.5 |
2.1 Equity and investment fund shares | 0.3 | 0.3 | 0.2 |
2.2 Debt securities | 0.0 | 0.1 | 0.3 |
3. Other Investment | 3.8 | 4.7 | 5.2 |
3.1 Trade Credits | 0.9 | 0.8 | 0.7 |
3.2 Loans | 0.5 | 0.7 | 0.7 |
3.3 Currency and Deposits | 1.6 | 2.2 | 2.4 |
3.4 Other Assets | 0.8 | 1.0 | 1.4 |
4. Reserve Assets | 18.6 | 18.0 | 18.9 |
B. Liabilities | 40.2 | 39.4 | 38.8 |
1. Direct Investment | 15.6 | 15.0 | 14.8 |
1.1 Equity and investment fund shares | 14.7 | 14.0 | 13.8 |
1.2 Debt instruments | 0.9 | 1.0 | 1.0 |
2. Portfolio Investment | 8.0 | 7.3 | 6.4 |
2.1 Equity and investment fund shares | 4.7 | 3.8 | 3.0 |
2.2 Debt securities | 3.3 | 3.5 | 3.4 |
3. Other Investment | 16.6 | 17.1 | 17.6 |
3.1 Trade Credits | 3.6 | 3.5 | 4.0 |
3.2 Loans | 6.4 | 6.8 | 7.2 |
3.3 Currency and Deposits | 4.4 | 4.5 | 4.7 |
3.4 Other Assets | 1.6 | 1.7 | 1.1 |
3.5 Special drawing rights (Net incurrence of liabilities) | 0.6 | 0.6 | 0.6 |
[1] India’s quarterly IIP is disseminated with a lag of one quarter and the IIP data for end-December 2025 was released in the RBI website on March 30, 2026. |
