Annual Variations (April-March, 2019-20)
International financial assets of Indian residents increased by US$ 73.9 billion due to the rise in reserve assets and overseas direct investment by US$ 64.9 billion and US$ 13.0 billion, respectively, though other investments declined marginally during the year.
International financial liabilities increased by US$ 16.3 billion as direct investment and other investments rose by US$ 19.0 billion and US$ 11.0 billion, respectively.
Net claims of non-residents in India declined by US$ 57.6 billion in a year. On the other hand, these are lowered by US$ 45.8 billion to US$ 379.3 billion in March 2020.
Ratio of International Financial Assets and Liabilities to GDP:
-The ratio of overseas financial assets to India’s Gross Domestic Product (GDP) in 2019-20 (at current market prices) moved up to 26.5% in March 2020 (23.4% a year ago)
-The ratio of total claims of non-residents to GDP increased to 40.5 per cent in March 2020 (39.3 per cent a year ago).
-The ratio of net IIP to GDP improved to (-) 14.0% as at end-March 2020 [(-) 15.9%].
–The ratio of India’s international financial assets to international financial liabilities improved significantly to 65.4% at end-March 2020 (62.1% a quarter ago; 59.5% a year ago).
About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed).
