RBI: Reserve assets surge by USD34.8 billion, net claims of NRI declined by USD12.2 billion

Current Context: On April 1, 2024, the Reserve Bank of India (RBI) released the latest figures for India’s International Investment Position (IIP) as of December 2023.

• The report showed a significant rise in reserve assets by USD 34.8 billion during the third quarter of 2023-24, which constitutes over 85% of the increase in foreign assets held by Indian residents.
• Meanwhile, the net claims of non-residents in India declined by USD 12.2 billion during October-December 2023, culminating at USD 370.4 billion by the end of December 2023.
• This decline is primarily attributed to a substantial surge in Indian residents’ overseas financial assets, amounting to USD 40.7 billion, outpacing the increase in foreign-owned assets within India, which stood at USD 28.5 billion.
• Despite a marginal decline in trade credits, the influx of investments and loans from abroad has contributed to the upswing in India’s foreign liabilities.

Question:

Q.1 What was the net claims of non-residents on India by the end of December 2023?
a. USD 12.2 billion
b. USD 28.5 billion
c. USD 370.4 billion
d. USD 34.8 billion