It is the time when the world is looking forward for India’s contribution to rejuvenate economic downturn and social distress at the global dais, when the RBI has come up with a press release on India’s International Investment Position for period ending December 2021.
It’s the 31st Day of March, 2022, when the RBI made available this data for all stakeholders interested. Some of the key highlights are as under:
The claims of non-residents on India surged by USD 21.1 billion during the quarter ended December 2021. The sources of escalation being USD 16.2 billion rise in foreign owned assets in India supplemented by a decline of USD 4.9 billion in Indian residents’ overseas financial assets.
An increase in the claims of foreign nationals on India were largely driven by factors like high inward direct investment, trade credit and loans taken by Indians.
Apart from the rise mentioned above, this quarter also witnessed a fall in financial assets owned by Indians outside India on account of decline in currency and deposits.
A vital change perceived during the concerned period (Oct-21 to Dec-21) was a fall in the ratio of India’s International financial assets to international financial liabilities from 73.4% in preceding quarter to 72.1% in this quarter.
Amid the steep rise in global oil prices and tensions spread across the world, things are getting back on track with foreign investments notching up gradually and international trade opening the frontiers for international balance of payments. The variations noticed above might not have a material impact on India’s international investment position but certainly bring a wave of watchfulness and vigilance to cater to any unwarranted economic backlash.
, December 2021){kind=link}
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