Foreign assets of Indians climb to $448 billion

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 on Thursday.

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.

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