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Date : Jun 24, 2024
Developments in India’s Balance of Payments during the Fourth Quarter (January-March) of 2023-24

Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2023-24, are presented in Statements I and II.

Key Features of India’s BoP in Q4:2023-24

  • India’s current account balance recorded a surplus of US$ 5.7 billion (0.6 per cent of GDP) in Q4:2023-24 as against a deficit of US$ 8.7 billion (1.0 per cent of GDP) in Q3:2023-241 and US$ 1.3 billion (0.2 per cent of GDP) a year ago [i.e., Q4:2022-23]2.

  • The merchandise trade deficit at US$ 50.9 billion in Q4:2023-24 was lower than US$ 52.6 billion a year ago.

  • Services exports grew by 4.1 per cent on a y-o-y basis in Q4:2023-24 on the back of rising exports of software, travel and business services. Net services receipt at US$ 42.7 billion was higher than its level a year ago (US$ 39.1 billion), which contributed to the surplus in the current account balance during Q4:2023-24.

  • Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 14.8 billion from US$ 12.6 billion a year ago.

  • Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 32.0 billion, an increase of 11.9 per cent over their level a year ago.

  • In the financial account, net foreign direct investment flows were US$ 2.0 billion in Q4:2023-24 as compared with US$ 6.4 billion a year ago.

  • Foreign portfolio investment recorded a net inflow of US$ 11.4 billion in Q4:2023-24 as against a net outflow of US$ 1.7 billion during Q4:2022-23.

  • Net inflows under external commercial borrowings to India amounted to US$ 2.6 billion in Q4:2023-24 as compared with US$ 1.7 billion a year ago.

  • Non-resident deposits recorded a higher net inflow of US$ 5.4 billion than US$ 3.6 billion in Q4:2022-23.

  • There was an accretion of foreign exchange reserves (on a BoP basis i.e., excluding valuation effects) to the tune of US$ 30.8 billion in Q4:2023-24 as compared with an accretion of US$ 5.6 billion a year ago (Table 1).

BoP during 2023-24

  • India’s current account deficit moderated to US$ 23.2 billion (0.7 per cent of GDP) during 2023-24 from US$ 67.0 billion (2.0 per cent of GDP) during the previous year on the back of a lower merchandise trade deficit.

  • Net invisibles receipt was higher during 2023-24 than a year ago, primarily on account of services and transfers.

  • During 2023-24, portfolio investment recorded a net inflow of US$ 44.1 billion as against an outflow of US$ 5.2 billion a year ago.

  • Net FDI inflow was US$ 9.8 billion during 2023-24 as compared with US$ 28.0 billion in 2022-23.

  • In 2023-24, there was an accretion of US$ 63.7 billion to the foreign exchange reserves (on a BoP basis).

Table 1: Major Items of India's Balance of Payments
(US$ billion)
  January-March 2023 January-March 2024 2022-23 2023-24
  Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
A. Current Account 238.0 239.3 -1.3 253.6 247.9 5.7 921.9 988.8 -67.0 942.9 966.1 -23.2
1. Goods 115.8 168.4 -52.6 121.7 172.5 -50.9 456.1 721.4 -265.3 441.5 683.5 -242.1
   Of which:                        
      POL 23.9 50.8 -26.9 22.2 49.6 -27.4 97.5 209.4 -111.9 84.2 179.6 -95.5
2. Services 85.8 46.8 39.1 89.4 46.7 42.7 325.3 182.0 143.3 341.1 178.3 162.8
3. Primary Income 7.7 20.3 -12.6 10.5 25.3 -14.8 27.8 73.8 -45.9 41.5 91.2 -49.8
4. Secondary Income 28.6 3.9 24.8 32.1 3.4 28.7 112.6 11.7 100.9 118.9 13.0 105.9
B. Capital Account and Financial Account 153.4 152.5 0.9 248.1 254.4 -6.2 702.9 634.9 68.0 850.3 827.8 22.5
  Of which:                        
  Change in Reserve (Increase (-)/Decrease (+)) 0 5.6 -5.6 0.0 30.8 -30.8 30.4 21.2 9.1 0.0 63.7 -63.7
C. Errors & Omissions (-) (A+B) 0.4 0.0 0.4 0.5 0.0 0.5 0.0 1.0 -1.0 0.7 0.0 0.7
P: Preliminary.
Note: Total of subcomponents may not tally with aggregate due to rounding off.

(Puneet Pancholy)  
Chief General Manager

Press Release: 2024-2025/550


1 The current account deficit for Q3:2023-24 was revised to US$ 8.7 billion from US$ 10.5 billion earlier due to downward adjustment of customs data on merchandise imports.

2 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55933. For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector › International Trade › Quarterly/Yearly.


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