Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2024-25, are presented in Statements I and II. Key Features of India’s BoP in Q2:2024-25 -
India’s current account deficit (CAD) moderated marginally to US$ 11.2 billion (1.2 per cent of GDP) in Q2:2024-25 from US$ 11.3 billion (1.3 per cent of GDP) in Q2:2023-24.1 -
Merchandise trade deficit increased to US$ 75.3 billion in Q2:2024-25 from US$ 64.5 billion in Q2:2023-24. -
Net services receipts increased to US$ 44.5 billion in Q2:2024-25 from US$ 39.9 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as computer services, business services, travel services and transportation services. -
Net outgo on the primary income account, primarily reflecting payments of investment income, decreased to US$ 9.5 billion in Q2:2024-25 from US$ 11.6 billion in Q2:2023-24. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 31.9 billion in Q2: 2024-25 from US$ 28.1 billion in Q2:2023-24. -
In the financial account, net foreign direct investment recorded an outflow of US$ 2.2 billion in Q2:2024-25 as compared with an outflow of US$ 0.8 billion in the corresponding period of 2023-24. -
Net inflows under foreign portfolio investment increased to US$ 19.9 billion in Q2: 2024-25 from US$ 4.9 billion in Q2:2023-24. -
Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 5.0 billion in Q2:2024-25, as against outflows of US$ 1.9 billion in the corresponding period a year ago. -
Non-resident deposits (NRI deposits) recorded net inflows of US$ 6.2 billion, higher than US$ 3.2 billion a year ago. -
There was an accretion of US$ 18.6 billion to the foreign exchange reserves (on a BoP basis) in Q2:2024-25, higher than US$ 2.5 billion in Q2:2023-24 (Table 1). BoP During April-September 2024 (H1:2024-25) -
India’s current account deficit was US$ 21.4 billion (1.2 per cent of GDP) in H1:2024-25 as compared with US$ 20.2 billion (1.2 per cent of GDP) in H1:2023-24. -
Net invisibles receipts at US$ 119.0 billion were higher in H1:2024-25 as compared with US$ 101.0 billion a year ago, primarily on account of higher net services receipts. -
Net FDI inflows at US$ 4.4 billion in H1:2024-25 was higher than US$ 3.9 billion in H1:2023-24. -
FPI recorded net inflows of US$ 20.8 billion in H1:2024-25 as compared with net inflows of US$ 20.7 billion a year ago. -
In H1:2024-25, there was an accretion of US$ 23.8 billion to the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | July – September 2023 PR | July – September 2024 P | April – September 2023 PR | April – September 2024 P | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 231.7 | 242.9 | -11.3 | 245.7 | 256.8 | -11.2 | 453.3 | 473.5 | -20.2 | 487.3 | 508.7 | -21.4 | | 1. Goods | 108.3 | 172.8 | -64.5 | 104.0 | 179.3 | -75.3 | 213.2 | 334.4 | -121.2 | 215.1 | 355.6 | -140.4 | | of which: | | | | | | | | | | | | | | POL | 22.7 | 42.1 | -19.4 | 15.7 | 37.4 | -21.7 | 41.7 | 84.0 | -42.2 | 36.3 | 88.9 | -52.6 | | 2. Services | 83.4 | 43.4 | 39.9 | 93.5 | 48.9 | 44.5 | 163.9 | 88.9 | 75.1 | 182.0 | 97.7 | 84.2 | | 3. Primary Income | 11.9 | 23.5 | -11.6 | 16.3 | 25.8 | -9.5 | 20.9 | 42.8 | -21.8 | 28.8 | 49.4 | -20.7 | | 4. Secondary Income | 28.1 | 3.2 | 24.9 | 31.9 | 2.8 | 29.1 | 55.3 | 7.5 | 47.8 | 61.5 | 5.9 | 55.5 | | B. Capital Account and Financial Account | 205.8 | 195.5 | 10.3 | 307.9 | 296.0 | 11.9 | 387.6 | 368.0 | 19.7 | 572.9 | 551.6 | 21.3 | | of which: | | | | | | | | | | | | | | 1. Direct Investment | 16.6 | 17.4 | -0.8 | 21.2 | 23.5 | -2.2 | 35.9 | 32.0 | 3.9 | 45.2 | 40.7 | 4.4 | | 2. Portfolio Investment | 112.0 | 107.0 | 4.9 | 182.1 | 162.3 | 19.9 | 201.8 | 181.1 | 20.7 | 342.0 | 321.2 | 20.8 | | 3. Other Investments | 71.6 | 61.0 | 10.6 | 98.0 | 79.6 | 18.4 | 139.2 | 114.5 | 24.7 | 173.0 | 144.0 | 29.0 | | of which: | | | | | | | | | | | | | | NRI Deposits | 21.3 | 18.0 | 3.2 | 28.9 | 22.8 | 6.2 | 40.2 | 34.7 | 5.4 | 52.3 | 42.2 | 10.2 | | ECBs to India | 4.6 | 6.5 | -1.9 | 12.4 | 7.4 | 5.0 | 17.9 | 14.1 | 3.7 | 20.8 | 14.2 | 6.7 | | 4. Reserve Assets [Increase (-)/ Decrease (+)] | 0.0 | 2.5 | -2.5 | 0.0 | 18.6 | -18.6 | 0.0 | 27.0 | -27.0 | 0.0 | 23.8 | -23.8 | | C. Errors & Omissions (-) (A+B) | 1.0 | 0.0 | 1.0 | 0.0 | 0.7 | -0.7 | 0.5 | 0.0 | 0.5 | 0.1 | 0.0 | 0.1 | | PR: Partially Revised; and P: Preliminary. | | Note: Total of sub-components may not tally with aggregate due to rounding off. | (Puneet Pancholy)
Chief General Manager Press Release: 2024-2025/1797
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