Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2024-25, are presented in Statements I and II. Key Features of India’s BoP in Q1:2024-25 -
India’s current account deficit (CAD) widened marginally to US$ 9.7 billion (1.1 per cent of GDP) in Q1:2024-25 from US$ 8.9 billion (1.0 per cent of GDP) in Q1:2023-24 and against a surplus of US$ 4.6 billion (0.5 per cent of GDP)1 in Q4:2023-24.2 -
The widening of CAD on a year-on-year (y-o-y) basis was primarily due to a rise in merchandise trade deficit to US$ 65.1 billion in Q1:2024-25 from US$ 56.7 billion in Q1:2023-24. -
Net services receipts increased on a y-o-y basis to US$ 39.7 billion in Q1:2024-25 from US$ 35.1 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. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to US$ 29.5 billion in Q1:2024-25 from US$ 27.1 billion in Q1:2023-24. -
Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 10.7 billion in Q1:2024-25 from US$ 10.2 billion in Q1:2023-24. -
In the financial account, net foreign direct investment inflows increased to US$ 6.3 billion in Q1:2024-25 from US$ 4.7 billion in the corresponding period of 2023-24. -
Net inflows under foreign portfolio investment moderated to US$ 0.9 billion from US$ 15.7 billion in Q1:2023-24. -
Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 1.8 billion in Q1:2024-25, lower than US$ 5.6 billion in the corresponding period a year ago. -
Non-resident deposits (NRI deposits) recorded net inflows of US$ 4.0 billion, higher than US$ 2.2 billion a year ago. -
There was an accretion of US$ 5.2 billion to the foreign exchange reserves (on a BoP basis) in Q1:2024-25 as compared with US$ 24.4 billion in Q1:2023-24 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | April-June 2023 PR | April-June 2024 P | | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 221.6 | 230.6 | -8.9 | 241.6 | 251.4 | -9.7 | | 1. Goods | 104.9 | 161.6 | -56.7 | 111.2 | 176.3 | -65.1 | | of which: | | | | | | | | POL | 19.0 | 41.8 | -22.8 | 20.7 | 51.5 | -30.8 | | 2. Services | 80.6 | 45.4 | 35.1 | 88.5 | 48.7 | 39.7 | | 3. Primary Income | 9.0 | 19.2 | -10.2 | 12.5 | 23.2 | -10.7 | | 4. Secondary Income | 27.1 | 4.3 | 22.9 | 29.5 | 3.1 | 26.4 | | B. Capital Account and Financial Account | 181.8 | 172.5 | 9.4 | 264.5 | 255.3 | 9.2 | | of which: | | | | | | | | 1. Direct Investment | 19.3 | 14.6 | 4.7 | 23.4 | 17.1 | 6.3 | | 2. Portfolio Investment | 89.8 | 74.0 | 15.7 | 159.8 | 158.9 | 0.9 | | 3. Other Investment | 67.6 | 53.6 | 14.1 | 75.0 | 64.3 | 10.7 | | of which: | | | | | | | | NRI Deposits | 18.9 | 16.7 | 2.2 | 23.4 | 19.4 | 4.0 | | ECBs to India | 13.2 | 7.7 | 5.6 | 8.5 | 6.7 | 1.8 | | 4. Reserve Assets [Increase (-)/Decrease (+)] | 0.0 | 24.4 | -24.4 | 0.0 | 5.2 | -5.2 | | C. Errors & Omissions (-) (A+B) | 0.0 | 0.4 | -0.4 | 0.6 | 0.0 | 0.6 | | 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: 2024-2025/1185
|
|