Mumbai: India’s current account deficit (CAD) moderated marginally to $11.2 billion or 1.2 per cent of GDP year-on-year in the July-September quarter of 2024-25, according to Reserve Bank data released Friday.
The CAD, an indicator of the country’s external payment scenario, was $11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24.
“India’s current account deficit (CAD) moderated marginally to $11.2 billion (1.2 per cent of GDP) in Q2 2024-25 from $11.3 billion (1.3 per cent of GDP) in Q2:2023-24,” the RBI said.
During April-September 2024 (H1 2024-25), the current account deficit was $21.4 billion or 1.2 per cent of GDP compared to $20.2 billion (1.2 per cent of GDP) in the year-ago period.
Merchandise trade deficit increased to $75.3 billion in the second quarter of 2024-25 from $64.5 billion in the comparable period of 2023-24, as per the RBI’s data on Balance of Payments.
Net services receipts increased to $44.5 billion in Q2 2024-25 from $39.9 billion a year ago.
Services exports have risen, on a year-on-year basis, across major categories like computer services, business services, travel services and transportation services.
Further, private transfer receipts, mainly representing remittances by Indians employed overseas, rose to $31.9 billion in the July-September quarter in 2024-25 from $28.1 billion in the second quarter of 2023-24, the data showed.
In the financial account, the RBI said net foreign direct investment recorded an outflow of $2.2 billion in Q2 2024-25 compared to $0.8 billion outflow in the corresponding period of 2023-24.
Net inflows under foreign portfolio investment increased to $19.9 billion in Q2 2024-25 from $4.9 billion a year ago.
During April-September 2024, the RBI data showed that net invisibles receipts at USD 119.0 billion were higher in H1 2024-25 against $101 billion a year ago, primarily on account of higher net services receipts.
Also, net FDI inflows at $4.4 billion in H1:2024-25 was higher than $3.9 billion in H1:2023-24.
FPI recorded net inflows of $20.8 billion in H1:2024-25 compared to net inflows of $20.7 billion a year ago.
In H1 2024-25, there was an accretion of $23.8 billion to the foreign exchange reserves (on a BoP basis), the RBI said.
PTI
