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Date: 2025-09-30 Category: Not Applicable State: Union Government Country: India

India’s International Investment Position (IIP), June 2025

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This press release by the Reserve Bank of India (RBI), dated September 30, 2025, provides data on India's International Investment Position (IIP) for end-June 2025. The release compares current data with previous periods. The previous quarterly IIP for end-March 2025 was released on the RBI website on June 27, 2025. **Key Points / Main Content** *IIP Overview* * Net claims of non-residents on India decreased by US$ 16.4 billion during Q1:2025-26, totaling US$ 312.8 billion at end-June 2025. * The ratio of India’s international assets to international liabilities improved to 79.2% in June 2025. *Assets* * The share of reserves in India's international financial assets increased marginally to 58.7% in June 2025. * Reserve assets accounted for over 62% of the rise in Indian residents' overseas financial assets. * Major contributors include direct investments (17.6%) and currency & deposits (6.7%). *Liabilities* * Inward direct investment (45.5%), loans (30.9%), and currency & deposits (13.1%) constituted about 90% of the rise in foreign liabilities of Indian residents during Q1:2025-26. * The share of debt liabilities in total external liabilities declined marginally from 54.8% to 54.5% during the quarter. **Impact Analysis** **Government/RBI** *Impact* * Needs to monitor and analyze the IIP data to formulate and adjust economic policies, specifically those related to investment, trade, and currency management. *Action Required* * Incorporate the data into macroeconomic models and forecasts. * Review and adjust policies to encourage more investment and optimize the asset-liability ratio. **Indian Residents/Investors** *Impact* * Understanding the IIP helps in making informed investment decisions regarding overseas assets and liabilities. *Action Required* * Analyze the trends in international assets and liabilities to assess potential risks and opportunities. * Adjust their investment strategies based on the data, particularly concerning direct investment, loans, and currency deposits. **Non-Residents/Foreign Investors** *Impact* * The IIP data provides insights into the economic health and stability of India, affecting investment decisions. *Action Required* * Review the net claims data to gauge the level of risk associated with investments in India. * Assess the trends in direct and portfolio investments to identify sectors and opportunities for future investments.

Key Entities Referenced

India's International Investment Position (IIP): A statistical statement that shows at a point in time the value and composition of (1) an economy's financial assets that are claims on nonresidents and (2) an economy's liabilities to nonresidents. Reserve Bank of India: The central bank of India, responsible for releasing data relating to India's International Investment Position.
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प्रेस प्रकाशनी PRESS RELEASE भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502 September 30, 2025 India’s International Investment Position (IIP), June 2025 Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2025[1]. Key Features of India’s IIP in end-June 2025: • Net claims of non-residents on India declined by US$ 16.4 billion during Q1:2025-26 and stood at US$ 312.8 billion as at end-June 2025. It was mainly due to higher rise in Indian residents’ overseas financial assets (US$ 47.8 billion) as compared to the foreign-owned assets in India (US$ 31.4 billion) (Table 1). • The ratio of India’s international assets to international liabilities improved to 79.2 per cent in June 2025 from 77.6 per cent a quarter ago and 71.5 per cent two years ago (Chart 1 & Table 1). • The share of reserves in India’s international financial assets increased marginally to 58.7 per cent in June 2025. Reserve assets accounted for over 62 per cent of the rise in Indian residents’ overseas financial assets during the quarter; other major contributors were direct investments (17.6 per cent) and currency & deposits (6.7 per cent) (Table 2). • Inward direct investment (45.5 per cent), loans (30.9 per cent) and currency & deposits (13.1 per cent) together constituted around 90 per cent of the rise in foreign liabilities of Indian residents during Q1:2025-26. • The share of debt liabilities in total external liabilities declined marginally from 54.8 per cent to 54.5 per cent during the quarter (Table 3). (Puneet Pancholy) Press Release: 2025-2026/1209 Chief General Manager [1] India’s quarterly IIP is disseminated with a lag of one quarter and the previous quarterly IIP for end-March 2025 was released in the RBI website on June 27, 2025.2Table 1: Overall International Investment Position of India (US$ billion) Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Period (PR) (PR) (PR) (PR) (P) Net IIP (A-B) -366.8 -353.1 -364.0 -329.2 -312.8 A. Assets 1,051.9 1,119.2 1,079.0 1,140.9 1,188.7 1. Direct Investment 246.6 254.4 260.8 270.5 278.9 1.1 Equity and investment fund shares 156.6 162.4 166.5 173.6 179.6 1.2 Debt instruments 90.0 92.0 94.3 96.9 99.3 2. Portfolio Investment 12.4 12.4 12.0 15.4 16.3 2.1 Equity and investment fund shares 10.7 11.1 9.2 10.4 13.1 2.2 Debt securities 1.7 1.3 2.8 5.0 3.2 3. Other Investment 140.9 146.6 170.5 186.7 195.4 3.1 Trade Credits 32.8 32.9 33.2 33.4 33.8 3.2 Loans 20.8 22.1 22.5 25.9 24.4 3.3 Currency and Deposits 57.8 56.1 68.6 79.3 82.5 3.4 Other Assets 29.5 35.5 46.2 48.1 54.7 4. Reserve Assets 652.0 705.8 635.7 668.3 698.1 B. Liabilities 1,418.7 1,472.3 1,443.0 1,470.1 1,501.5 1. Direct Investment 552.8 555.4 547.2 556.9 571.2 1.1 Equity and investment fund shares 520.6 522.8 513.0 521.9 535.4 1.2 Debt instruments 32.2 32.6 34.2 35.0 35.8 2. Portfolio Investment 277.3 294.3 276.5 272.0 272.6 2.1 Equity and investment fund shares 160.9 170.9 155.6 141.9 147.4 2.2 Debt securities 116.4 123.4 120.9 130.1 125.2 3. Other Investment 588.6 622.6 619.3 641.2 657.7 3.1 Trade Credits 125.9 131.2 135.6 131.2 131.9 3.2 Loans 224.5 239.3 240.2 250.1 259.8 3.3 Currency and Deposits 160.6 164.1 165.7 167.6 171.7 3.4 Other Liabilities 77.6 88.0 77.8 92.3 94.3 of which: 21.8 22.4 21.6 22.0 22.7 Special drawing rights (Net incurrence of liabilities) Memo Item: Assets to Liability ratio (%) 74.1 76.0 74.8 77.6 79.2 Notes (applicable for all tables): 1. P: Provisional; PR: Partially Revised; and R: Revised. 2. The sum of the constituent items may not add to the total due to rounding off. 3Table 2: Composition of International Financial Assets and Liabilities of India (per cent) Period Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 (PR) (PR) (PR) (PR) (P) A. Assets 1. Direct Investment 23.4 22.7 24.2 23.7 23.5 2. Portfolio Investment 1.2 1.1 1.1 1.3 1.4 3. Other Investment 13.4 13.1 15.8 16.4 16.4 4. Reserve Assets 62.0 63.1 58.9 58.6 58.7 Total 100.0 100.0 100.0 100.0 100.0 B. Liabilities 1. Direct Investment 39.0 37.7 37.9 37.9 38.0 2. Portfolio Investment 19.5 20.0 19.2 18.5 18.2 3. Other Investment 41.5 42.3 42.9 43.6 43.8 100.0 100.0 100.0 100.0 100.0 Total Table 3: Share of External Debt and Non-Debt Liabilities of India (per cent) Period Jun-24 (PR) Sep-24 (PR) Dec-24 (PR) Mar-25 (PR) Jun-25 (P) Non-Debt Liabilities 48.0 47.1 46.3 45.2 45.5 Debt Liabilities 52.0 52.9 53.7 54.8 54.5 Total 100.0 100.0 100.0 100.0 100.0

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