RBI Data Confirms "India’s Overseas Financial Assets Surge by 72% in FY 2024–25".
Banking & Finance
The Reserve Bank of India (RBI) reported that India’s overseas financial assets rose sharply from US $1,033.8 billion (Mar 2024) to US $1,139.2 billion (Mar 2025)—a 72% increase—powered by robust overseas direct investments, higher currency and deposit holdings, and reserve assets, reflecting a growing global financial presence.
- India’s total external financial assets grew by US $105.4 billion during FY 2024–25, outpacing the increase in foreign-owned assets in India, which rose by US $74.2 billion. As a result, net claims of non-residents on India fell by US $31.2 billion, signaling improved external financial health.
- Over 54% of the growth in overseas financial assets came from reserve assets, which include foreign currency and gold holdings. The remaining increase was driven by currency and deposit balances held abroad and overseas direct investments by Indians.
- By March 2025, the ratio of India’s international financial assets to liabilities improved to 77.5%, up from 74.1% a year earlier. This wider cushion underscores enhanced external financial resilience and a more balanced international investment position.
Main Point :- (i) In the January–March 2025 quarter alone, Indian residents’ overseas financial assets increased by US $60 billion, compared to foreign-owned assets in India rising only US $25.8 billion—emphasising outbound capital preferences.
(ii) Net claims of non-residents on India declined to US $330 billion by March 2025, compared to US $364.2 billion in December 2024, largely due to outsized asset growth—a positive sign in reducing foreign net exposure.
(iii) RBI data reflects a strategic shift by Indian entities—both private and public—toward higher global investment and currency diversification, aligning with broader financial stability goals and a strengthened global positioning.
About RBI
Founder: British Raj
Founded: 1 April 1935
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