RBI Data Shows Net Claims of Non-Residents on India Increase by USD 11 Billion in Q3FY25.

Banking & Finance

The data indicated a decrease in foreign assets of Indian residents by USD 40.1 billion, along with a decrease in claims of non-residents in India by USD 29.1 billion. This resulted in an increase in India's total foreign liabilities.


      - RBI mentioned that the decrease in foreign assets of Indian residents during Q3FY25 was primarily due to a decline of USD 70.1 billion in reserve assets.

      - However, reserve assets saw an increase of USD 13.2 billion compared to December 2023.

     

Main Point :-   (i) According to the latest data from RBI, India's Current Account Deficit (CAD) slightly increased to USD 11.5 billion, accounting for 1.1% of the country's Gross Domestic Product (GDP) during Q3FY25, compared to USD 10.4 billion (1.1% of GDP) in Q3FY24, largely due to a rise in service exports.

      (ii) The data further revealed that India's foreign exchange reserves (FER) declined by USD 37.7 billion on a Balance of Payments (BoP) basis in Q3FY25, compared to an increase of USD 6.0 billion in Q3FY24.


About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai
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