Document title: India’s International Investment Position (IIP), March 2026

Issuing authority: Reserve Bank of India (RBI)

Reference: Press Release 2026-2027/569

Date: 30 June 2026

External Sector and Currency

The RBI released the quarterly International Investment Position for end‑March 2026. Net claims of non‑residents on India declined by US$52.4 billion in Q4 2025‑26, reaching US$209.9 billion. The fall was driven primarily by a US$40.1 billion reduction in foreign‑owned assets in India, partially offset by a US$12.3 billion increase in Indian residents’ overseas financial assets. Exchange‑rate movements of the rupee against major currencies affected the dollar‑valued liability figures. Over the full FY 2025‑26, net claims of non‑residents fell by US$119.2 billion, reflecting a US$42.8 billion drop in external financial liabilities and a US$76.4 billion rise in overseas assets of residents.

Capital Markets and Flows

Direct investment remained the dominant component of both assets and liabilities. In March 2026, resident overseas direct investment contributed over 60 % of the increase in overseas financial assets, with reserve assets accounting for 57.1 % of total international assets. Portfolio investment showed modest growth, with assets rising to US$17.8 billion and liabilities falling to US$233.4 billion. The share of external debt in total external liabilities increased gradually, reaching 56.6 % in March 2026, while non‑debt liabilities fell to 43.4 %.

Financial Stability

The ratio of India’s international financial assets to liabilities improved to 85.2 % in March 2026, up from 82.0 % a quarter earlier and 77.5 % a year earlier. As a proportion of GDP (current market prices), residents’ overseas financial assets improved while external financial liabilities moderated, moving the net‑claims‑to‑GDP ratio from –9.0 % a year ago to –5.9 % in March 2026. Reserve assets remained the largest asset class, representing 57.1 % of total international assets, underscoring a strong external buffer.

Overall, the IIP data indicate a contraction in foreign liabilities, a modest expansion of resident overseas assets, and an improving assets‑to‑liabilities balance, reflecting a more resilient external position for India as of March 2026.