MUMBAI, Dec 27: India’s current account deficit (CAD) moderated marginally to USD 11.2 billion or 1.2 per cent of GDP year-on-year in the July-September quarter of 2024-25, according to Reserve Bank data released on Friday.
The CAD, an indicator of the country’s external payment scenario, was USD 11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24.
“India’s current account deficit (CAD) moderated marginally to USD 11.2 billion (1.2 per cent of GDP) in Q2 2024-25 from USD 11.3 billion (1.3 per cent of GDP) in Q2:2023-24,” the RBI said.
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During April-September 2024 (H1 2024-25), the current account deficit was USD 21.4 billion or 1.2 per cent of GDP compared to USD 20.2 billion (1.2 per cent of GDP) in the year-ago period.
Merchandise trade deficit increased to USD 75.3 billion in the second quarter of 2024-25 from USD 64.5 billion in the comparable period of 2023-24, as per the RBI’s data on Balance of Payments.
Net services receipts increased to USD 44.5 billion in Q2 2024-25 from USD 39.9 billion a year ago.
Services exports have risen, on a year-on-year basis, across major categories like computer services, business services, travel services and transportation services.
Further, private transfer receipts, mainly representing remittances by Indians employed overseas, rose to USD 31.9 billion in the July-September quarter in 2024-25 from USD 28.1 billion in the second quarter of 2023-24, the data showed.
In the financial account, the RBI said net foreign direct investment recorded an outflow of USD 2.2 billion in Q2 2024-25 compared to USD 0.8 billion outflow in the corresponding period of 2023-24.
Net inflows under foreign portfolio investment increased to USD 19.9 billion in Q2 2024-25 from USD 4.9 billion a year ago.
During April-September 2024, the RBI data showed that net invisibles receipts at USD 119.0 billion were higher in H1 2024-25 against USD 101 billion a year ago, primarily on account of higher net services receipts.
Also, net FDI inflows at USD 4.4 billion in H1:2024-25 was higher than USD 3.9 billion in H1:2023-24.
FPI recorded net inflows of USD 20.8 billion in H1:2024-25 compared to net inflows of USD 20.7 billion a year ago.
In H1 2024-25, there was an accretion of USD 23.8 billion to the foreign exchange reserves (on a BoP basis), the RBI said. (PTI)
India’s forex reserves drop by USD 8.478 billion to USD 644.391 billion
Mumbai, Dec 27: The country’s forex reserves dropped by a further USD 8.478 billion to USD 644.391 billion for the week ended December 20, the RBI said on Friday.
In the previous reporting week, the reserves had dropped by USD 1.988 billion to a six-month low of USD 652.869 billion.
The reserves have been declining for the last few weeks, and the drop has been attributed to revaluation along with forex market interventions by RBI to help reduce volatilities in the rupee. The forex reserves had increased to an all-time high of USD 704.885 billion in end-September.
For the week ended December 20, foreign currency assets, a major component of the reserves, decreased by USD 6.014 billion to USD 556.562 billion, the data released on Friday showed.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves decreased by USD 2.33 billion to USD 65.726 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were down by USD 112 million to USD 17.885 billion, the apex bank said.
India’s reserve position with the IMF was also down by USD 23 million to USD 4.217 billion in the reporting week, the central bank data showed. (PTI)
