The Reserve Bank of India (RBI) released data on India’s International Investment Position (IIP) for the end of December 2025.
Key Highlights
1. Net IIP Position Improves
Net claims of non-residents on India decreased by US$ 10.9 billion compared to September 2025.
It stood at US$ 260.5 billion at the end of December 2025.
This happened because Indian residents increased their overseas financial assets by US$ 12.8 billion, while foreign-owned assets in India increased by only US$ 1.9 billion.
2. Asset-Liability Ratio Improves
India’s international assets compared to liabilities improved to 82.1% in December 2025.
- It was 81.4% in the previous quarter
- It was 74.6% one year ago
3. Rise in Overseas Assets
Indian residents’ overseas financial assets increased during the quarter.
- Outward direct investment rose by US$ 7.6 billion
- Currency and deposits increased by US$ 9.4 billion
4. Reserve Assets Decline (Quarterly)
Reserve assets made up 57.4% of total overseas assets.
- They decreased by US$ 12.4 billion compared to the previous quarter
- Total reserve assets stood at US$ 687.7 billion
However, on a yearly basis, reserve assets increased by 8.2%.
5. Foreign Liabilities Slightly Increase
Foreign-owned assets in India increased slightly by 0.1%.
- Direct investment fell by US$ 3.2 billion
- Portfolio investment fell by US$ 2.8 billion
- But trade credit increased by US$ 11.4 billion, which offset the decline
6. Debt Share Increases
The share of debt liabilities in total external liabilities increased to 55.3% in December 2025.
- It was 54.8% in the previous quarter
This increase was due to a fall in equity investment and a rise in debt investment.
