Net claims of foreigners and NRIs up at $211 bn in Q2, FY11 | business | Hindustan Times
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Net claims of foreigners and NRIs up at $211 bn in Q2, FY11

business Updated: Jan 02, 2011 12:05 IST

Net claims of foreigners and NRIs on India rose to $ 211.1 billion during July-September this fiscal, up $ 33.2 billion over the previous quarter, as robust economic growth drew higher overseas investment.

Easier loans abroad also led to the bigger mop-up.

The second quarter (Q2) figure is a jump of 19 per cent in the net assets of foreigners and NRIs, from $ 177.9 billion during the April-June quarter (Q1) of 2010-11.

This was revealed by RBI data on India's International Investment Position (IIP), which represents the difference between assets held by residents and non-residents.

During Q2, total external financial assets of Indian residents increased $ 26.8 billion, or 7.15 per cent, to $ 401.7 billion, the IIP figure showed. The total external financial assets in Q1 were $ 374.9 billion.

Among the assets, direct investment abroad went up by $ 4.1 billion to $ 89.2 billion.

Portfolio investment by Indians in the form of equity securities remained flat at $ 0.9 billion during the quarter ended September.

Other investments by Indians in the overseas markets, including trade credits, loans and currency and deposits, increased by $ 5.5 billion, or 42 per cent, to $ 18.6 billion during the July-September quarter.

Loans also went up by $ 2.7 billion to $ 6.1 billion. Currency and deposits increased to $ 10.3 billion during the September quarter, up $ 2.4 billion from Q1.

The reserve assets of the country rose by $ 17.2 billion to $ 292.9 billion.

During July-September, the Indian economy expanded by 8.9 per cent, even as advanced economies such as the US and many European nations grappled with sluggish growth.

During the period, the country's total external financial liabilities registered an increase of $ 60 billion, or 11 per cent, to $ 612.8 billion. It was $ 552.8 billion for the quarter ended June 2010.

Direct investment into the country went up by $ 13.5 billion to $ 191.7 billion.

Portfolio investment in the country during the quarter ended September also grew by $ 28.8 billion to $ 164.3 billion over the previous quarter.

Liabilities in the nature of trade credits, loans and currency and deposits cumulatively increased by $ 17.6 billion to $ 256.8 billion due to availability of funds at substantially lower interest rates than in the domestic markets.

Loans to Indian companies went up $ 8.3 or 6.5 per cent during the quarter ended September to $ 135.8 billion.

During the July-September period, currency and deposits liabilities grew marginally to $ 50.5 billion.