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

Today, the Reserve Bank released data relating to India’s International Investment Position for end-March 2026^[1].

Key Features

IIP during Q4:2025-26 (January-March 2026):

• Net claims of non-residents on India declined by US$ 52.4 billion during Q4:2025-26 to US$ 209.9 billion as at end-March 2026, driven by decline in the foreign-owned assets (US$ 40.1 billion) in India along with the rise in Indian residents’ overseas financial assets (US$ 12.3 billion) (Table 1).

• Variation in the exchange rate of rupee vis-a-vis other currencies impacted the change in liabilities, when valued in US dollar terms.

• Decline in foreign liabilities of Indian residents was mainly attributed to the decline in portfolio investment and direct investment in India; increase in inward direct investment measured in rupee terms was outweighed by exchange rate depreciation, resulting in fall in its value in US dollar term.

• Increase in foreign direct investment accounted for more than 60 per cent of the rise in Indian residents’ overseas financial assets during the quarter Q4:2025-26 (January-March 2026), followed by reserve assets.

• Reserve assets accounted for 57.1 per cent of India’s international financial assets while overseas direct investment accounted for one fourth share (Table 2).

• The ratio of India’s international assets to international liabilities increased to 85.2 per cent in March 2026 from 82.0 per cent a quarter ago (Chart 1 & Table 1).

• The share of debt liabilities in total external liabilities increased gradually during the recent quarters and stood at 56.6 per cent as on end-March 2026 (Table 3).

IIP during FY:2025-26 (April-March):

• During FY 2025-26, the net claims of non-residents declined by US$ 119.2 billion, due to decline in external financial liabilities (US$ 42.8 billion), on the back of depreciation of rupee vis-a-vis US Dollar, alongside rise in Indian residents’ overseas financial assets by US $ 76.4 billion (Table 1).

• The rise in India’s overseas financial assets during 2025-26 is mainly driven by increase in overseas direct investment and reserve assets.

• Fall in portfolio investment and direct investment by non-residents resulted in decline in foreign liabilities of India during the year.

• The ratio of India’s international financial assets to international financial liabilities increased to 85.2 per cent in March 2026 from 77.5 per cent a year ago (Chart 1 & Table 1).

Ratio of International Financial Assets and Liabilities to Gross Domestic Product (GDP):

• As a ratio to GDP (at current market prices), residents’ overseas financial assets recorded improvement while, external financial liabilities moderated during FY 2025-26 (Table 4).

• As a result, the ratio of net claims of non-residents on India to GDP improved significantly to (-)5.9 per cent in March 2026 from (-)9.0 per cent a year ago.

(Brij Raj)          
Chief General Manager

Press Release: 2026-2027/569

^[1] India’s quarterly IIP is disseminated with a lag of one quarter and the IIP data for end-December 2025 was released in the RBI website on March 30, 2026.