Mumbai, June 28 (IANS) India recorded a current account surplus of $13.5 billion, constituting 1.3 per cent of GDP, in the fourth quarter of financial year 2024-25 (January–March), according to data released by the Reserve Bank of India (RBI) on Friday.
The robust performance has reversed the current account deficit of $11.3 billion (1.1 per cent of GDP) in the preceding third quarter (October-December) of 2024-25. It also represents a more than two-fold increase from a surplus of $4.6 billion (0.5 per cent of GDP) in the same quarter last year.
For the full year 2024-25, India’s current account deficit at $23.3 billion (0.6 per cent of GDP) was lower than $26 billion (0.7 per cent of GDP) during 2023-24, primarily due to higher net invisibles receipts, the RBI said. Net invisibles receipts were higher during 2024-25 than a year ago on account of services and personal transfers.
While merchandise exports moderated, the surplus in Q4 (Jan-March) was driven by strong services exports and a lower net outgo on the primary income account, RBI data shows. Net services receipts increased to $53.3 billion in Q4 2024-25 from $42.7 billion in the same quarter of the previous year.
Services exports have risen on a year-on-year basis in major categories such as business services and computer services, the RBI said. Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to $11.9 billion in Q4:2024-25 from $14.8 billion in the same quarter of 2023-24.
Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion in the Jan-March quarter of 2024-25 from $31.3 billion in the same quarter of the previous year. In the financial account, foreign direct investment (FDI) recorded a net inflow of $0.4 billion in the Jan-March as compared to an inflow of $2.3 billion in the same period of 2023-24.
Foreign portfolio investment (FPI) recorded a net outflow of $5.9 billion in Q4 as against a net inflow of $11.4 billion in the same quarter of the previous year. Net inflows under external commercial borrowings (ECBs) to India amounted to $ 7.4 billion in Q4 2024-25, as compared to $2.6 billion in the corresponding period a year ago, according to the RBI statement.
Non-resident deposits (NRI deposits) recorded a net inflow of $2.8 billion in Q4 2024-25, lower than $5.4 billion a year ago. There was an accretion of $8.8 billion to the foreign exchange reserves (on a BoP basis) in Q4 2024-25 as compared to an accretion of $30.8 billion in the same quarter Q4 2023-24 Net inflow under FDI at $1.0 billion during 2024-25 was lower than $ 10.2 billion during 2023-24.
FPI recorded a net inflow of $3.6 billion during the year, lower than $44.1 billion a year ago, the RBI statement added.
Source – sarkaritel.com
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