Economy
India’s External Gap Widens as Foreign Liabilities Rise in June
India’s net external liabilities rose to $220.3 billion in June as liabilities increased and foreign-owned assets declined.
What happened
The Reserve Bank said non-residents’ net claims on India increased by $16.5 billion during the first quarter of 2026-27, reaching $220.3 billion by end-June. External liabilities rose by $11.6 billion, while India’s foreign-owned assets fell by $4.9 billion. Direct-investment liabilities increased by $15.7 billion and other liabilities by $4.2 billion, offsetting a $14 billion decline in portfolio equity investments.
Why it matters
India’s international assets covered 84.6% of liabilities, down from 85.7% a quarter earlier. Debt liabilities also reached 56.9% of total external liabilities.
Source: RBI