Foreign owned assets in India rise to $891.5 billion in April-June

MUMBAI: The foreign-owned assets in India rose by $12.1 billion to $891.5 billion in the April-June quarter of this fiscal as compared to previous three months of FY 2014-15, according to RBI data.

This is mainly due to increase of $2.6 billion in portfolio investment in India and increase of $5.6 billion in direct investment into the country.

Net claims of non-residents on India increased by $0.6 billion over the previous quarter to $362.3 billion as on end-June 2015, according to Reserve Bank data on International Investment Position ( IIP) for the April-June quarter.

The ratio of India's international financial assets to international financial liabilities stood at 59.4 per cent in June 2015 as against 58.9 per cent in March 2015.

On the assets front, the Indian residents' financial assets abroad stood at $529.2 billion, up $11.4 billion from previous quarter due to a rise of $1.3 billion in reserve assets, the RBI said.

The difference in assets and liabilities, reflected by the net IIP, is disseminated with one quarter lag.

The IIP is an important input for understanding external sustainability and vulnerability, and is also useful in analysing the economic structure.