RBI - Reserve Bank of India

09/30/2024 | Press release | Distributed by Public on 09/30/2024 05:01

Developments in India’s Balance of Payments during the First Quarter (April June) of 2024 25

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

1 The current account surplus for Q4:2023-24 was revised downwards to US$ 4.6 billion from US$ 5.7 billion earlier due to an upward adjustment of customs data on merchandise imports.

2https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58147. For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector › International Trade › Quarterly/Yearly.