Net claims of non-residents on India declined by USD 19.8 billion in Q2

Current Context: The Reserve Bank of India (RBI) released a report titled "India's International Investment Position (IIP), September 2024" on December 30, 2024.

• This report provides a detailed analysis of India's international financial assets and liabilities.
• Here are the key points from the report:
• Net Claims Decline: Net claims of non-residents on India decreased by USD 19.8 billion, resulting in a total of USD 348.5 billion as of September 2024.
• Asset and Liability Trends: The decline was attributed to a more significant increase in Indian residents' overseas financial assets compared to the increase in foreign-owned assets in India.
• Improved Ratio: The ratio of India's international assets to international liabilities improved to 76.2% in September 2024, up from 74.1% in the previous quarter.
• Economic Indicators: These changes reflect broader economic trends, including increased investment by Indians abroad and a relative stabilization of foreign investment in India.

Question:

1 What was the total net claims of non-residents on India as of September 2024?

• A) USD 328.7 billion
• B) USD 388.5 billion
• C) USD 368.5 billion
• D) USD 348.5 billion

Answer: D) The net claims of non-residents on India decreased by USD 19.8 billion, resulting in a total of USD 348.5 billion as of September 2024.