Foreign assets of Indians climb to $448 billion

The financial assets of Indians held overseas climbed to $ 447.8 billion at end of March this year, amid uncertain domestic economic conditions.

"The Indian residents' financial assets abroad stood at $ 447.8 billion as at end-March 2013 recording an increase of $ 3.9 billion over previous quarter," revealed India's International Investment Position (IIP) report released by the Reserve Bank today.

The direct investment abroad moved up by $ 1.4 billion during the quarter to $ 119.5 billion as at end-March 2013 and other investment abroad (mainly currency and deposits) increased by $ 6.1 billion.

However, reserve assets, which remained the major component of the assets, decreased by $ 3.5 billion to $ 292.1 billion at end-March 2013, the report said.

Overall the Indian economy has witnessed slowdown in recent quarters and grew at a sluggish pace of 4.8 per cent in the three months ended March this year.

RBI said that net claims of non-residents on India increased by $ 27.1 billion over the previous quarter to $ 307.3 billion at end-March 2013, mainly on account increase in liabilities.

IIP statement reflects the value and the composition of financial assets of residents of an economy that are claims on non-residents and gold bullion held as reserve assets and their liabilities to non-residents.

The IIP statement further said the international financial liabilities increased by $ 31 billion over the previous quarter to $ 755.1 billion as at end- March 2013.

Direct investments and portfolio investments in India moved up by $ 8.6 billion and $ 13.9 billion respectively.

Among other investments liabilities, trade credit and currency and deposits (mainly NRI deposits) increased by $ 4.4 billion and $ 3.2 billion respectively.

"Due to rupee appreciation during end-December 2012 to end-March 2013 equity liabilities in $ term revised upwards by $ 2.4 billion," the RBI added.

It further said the ratio of total international financial assets to GDP (at current market prices) slightly declined to 24.3 per cent as at end-March 2013 from 24.5 per cent a year ago.

On the other hand, the ratio of total international financial liabilities to GDP rose to 41 per cent at end of the last fiscal from 38.5 per cent a year ago.






* Source:-Economic Times