October-December current account deficit at USD 10.5 bn vs USD 16.8 bn (YoY), says RBI
Mar 26, 2024
New Delhi [India], March 26 : The Reserve Bank of India (RBI) on Tuesday released the preliminary data on India's balance of payments (BoP) for the third quarter of October-December 2023-24.
India's current account balance recorded a deficit of USD 10.5 billion (1.2 per cent of GDP) in Q3: 2023-24, lower than USD 11.4 billion (1.3 per cent of GDP) in Q2: 2023-241 and USD 16.8 billion (2.0 per cent of GDP) a year ago [Q3: 2022-23].
The merchandise trade deficit at USD 71.6 billion was marginally higher than USD 71.3 billion during Q3: 2022-23.
Services exports grew by 5.2 per cent on a year-on-year basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and from a year ago that helped cushion the current account deficit.
Net outgo on the primary income account, primarily reflecting payments of investment income, increased to USD 13.2 billion from USD 12.7 billion a year ago.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 31.4 billion, an increase of 2.1 per cent over their level during the corresponding period a year ago.
In the financial account, foreign direct investment recorded a net inflow of USD 4.2 billion as compared with a net inflow of US$ 2.0 billion in Q3:2022-23.
Foreign portfolio investment recorded a net inflow of USD 12.0 billion, higher than US$ 4.6 billion during Q3:2022-23.
External commercial borrowings to India recorded a net outflow of USD 2.6 billion in Q3:2023-24 as compared with a net outflow of USD 2.5 billion a year ago.
Non-resident deposits recorded a higher net inflow of USD 3.9 billion than USD 2.6 billion a year ago.
There was an accretion of foreign exchange reserves (on a BoP basis) to the tune of USD 6.0 billion in Q3:2023-24 as compared with an accretion of USD 11.1 billion a year ago
India's current account deficit moderated to 1.2 per cent of GDP during April-December 2023 from 2.6 per cent of GDP in the corresponding period a year ago on the back of a lower merchandise trade deficit.
Net invisibles receipts were higher during April-December 2023 than a year ago, primarily on account of services and transfers.
Net FDI inflow at USD 8.5 billion during April-December 2023 was lower than USD 21.6 billion during April-December 2022.
During April-December 2023, portfolio investment recorded a net inflow of USD 32.7 billion as against an outflow of USD 3.5 billion during the corresponding period a year ago.
In April-December 2023, there was an accretion of USD 32.9 billion to the foreign exchange reserves (on a BoP basis that excludes valuation effects).
