India’s current account deficit narrowed marginally to $11.2 billion (1.2 percent of GDP) in the second quarter of 2024-25 from $11.3 billion (1.3 percent of GDP) in the second quarter of 2023-24.
During April-September 2024 (H1 2024-25), India’s current account deficit stood at $21.4 billion or 1.2 percent of GDP as against $20.2 billion (1.2 percent of GDP) in the year-ago period.
India’s current account deficit (CAD) stood at a modest $11.2 billion or 1.2 percent of GDP year-on-year in the July-September quarter of 2024-25, according to Reserve Bank data released on Friday. CAD, an indicator of the country’s external payment landscape, stood at $11.3 billion or 1.3 percent of GDP during the second quarter of 2023-24.
“India’s current account deficit (CAD) widened to $11.2 billion (1.2 percent of GDP) in Q2 2024-25 from $11.3 billion (1.3 percent of GDP) in Q2:2023-24,” RBI said.
Current account deficit was $21.4 billion or 1.2 percent of GDP during April-September 2024 (H1 2024-25) as against $20.2 billion (1.2 percent of GDP) in the year-ago period.
According to RBI balance of payments data, the merchandise trade deficit widened to $75.3 billion in the second quarter of 2024-25 from $64.5 billion in the corresponding period of 2023-24.
Net services receipts rose to $44.5 billion in the second quarter of 2024-25 from $39.9 billion a year ago.
Exports of services in major categories such as computer services, business services, travel services and transportation services have increased on a year-on-year basis.
Further, private transfer receipts, which mainly represent remittances from overseas Indians, increased from $28.1 billion in the second quarter of 2023-24 to $31.9 billion in the July-September quarter of 2024-25. Reached
In the fiscal account, RBI said net foreign direct investment recorded an outflow of $2.2 billion in Q2 2024-25 while In the same period of 2023-24, there was an outflow of $0.8 billion.
Net inflows under foreign portfolio investment rose to $19.9 billion in the second quarter of 2024-25 from $4.9 billion a year ago.
During April-September 2024, RBI data showed that net invisible receipts of $119.0 billion in H1 2024-25 were higher than $101 billion a year ago, mainly due to higher net service receipts. from
Also, net FDI inflows of $4.4 billion in H1: 2024-25 were higher than $3.9 billion in H1: 2023-24.
FPI recorded net inflows of $20.8 billion in H1:2024-25 as against net inflows of $20.7 billion a year ago.
RBI said that in H1 2024-25, foreign exchange reserves increased by $23.8 billion (BoP basis).
(This story has not been edited by News18 staff and is published from a syndicated news agency feed. PTI)