Special report India’s Overseas Financial Assets Surge in FY25, Signalling Stronger External Position

RBI data reveals a $105.4 billion jump in India’s external financial assets, driven by overseas direct investment, deposits, and reserve assets                                           Source: PIB

This positive shift in India’s external financial metrics not only underlines investor confidence but also provides a cushion for India’s balance of payments amid global uncertainties. The continued growth in outbound investments also highlights India’s emergence as a more assertive player in global financial and business ecosystems.

India witnessed a robust expansion in its overseas financial assets in the financial year 2024–25, with fresh data from the Reserve Bank of India (RBI) indicating significant growth in direct investments, currency holdings, and reserves.

According to the RBI’s report, India’s external financial assets grew by $105.4 billion, with over 72% of this increase stemming from three key components: overseas direct investment, currency and deposits, and reserve assets. Reserve assets alone accounted for more than half of the total rise.

“Over 72 per cent of the rise in India’s overseas financial assets was due to an increase in overseas direct investment, currency and deposits,” the RBI stated.

The data further revealed that India’s external financial liabilities also rose—by $74.2 billion. However, the stronger growth in assets led to a decline of $31.2 billion in net claims of non-residents on India, indicating an improvement in the country’s international investment position.

Between January and March 2025, Indian residents increased their overseas financial assets by $60.0 billion, while foreign-owned assets in India rose by $25.8 billion. This sharper asset growth boosted India’s financial resilience on the global stage.

Notably, the ratio of India’s international financial assets to its liabilities improved from 74.1% in March 2024 to 77.5% in March 2025, reflecting a healthier balance sheet and greater external stability.

On the liabilities front, inward direct investments and loans remained the dominant contributors. These two components made up over 75% of the rise in foreign liabilities during Q4 FY25. In this period alone, loans surged by $10.0 billion, while inward direct investment increased by $9.7 billion.