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
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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
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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.
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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.
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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.
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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.
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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.
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Net inflows under foreign portfolio investment moderated to US$ 0.9 billion from US$ 15.7 billion in Q1:2023-24.
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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.
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Non-resident deposits (NRI deposits) recorded net inflows of US$ 4.0 billion, higher than US$ 2.2 billion a year ago.
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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
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of which:
|
|
|
|
|
|
|
1. Direct Investment
|
19.3
|
14.6
|
4.7
|
23.4
|
17.1
|
6.3
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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.
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Note: Total of sub-components may not tally with aggregate due to rounding off.
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(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.
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