Source: Reserve Bank of India
|
Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2024-25, are presented in Statements I and II.
Key Features of India’s BoP in Q3:2024-25
-
India’s current account deficit (CAD) increased to US$ 11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from US$ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from US$ 16.7 billion (1.8 per cent of GDP)1 in Q2:2024-25.2
-
Merchandise trade deficit increased to US$ 79.2 billion in Q3:2024-25 from US$ 71.6 billion in Q3:2023-24.
-
Net services receipts increased to US$ 51.2 billion in Q3:2024-25 from US$ 45.0 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as business services, computer services, transportation services and travel services.
-
Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 16.7 billion in Q3:2024-25 from US$ 13.1 billion in Q3:2023-24.
-
Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 35.1 billion in Q3: 2024-25 from US$ 30.6 billion in Q3:2023-24.
-
In the financial account, foreign direct investment recorded a net outflow of US$ 2.8 billion in Q3:2024-25 as against an inflow of US$ 4.0 billion in the corresponding period of 2023-24.
-
Foreign portfolio investment recorded a net outflow of US$ 11.4 billion in Q3:2024-25 as against an inflow of US$ 12.0 billion in Q3:2023-24.
-
Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 4.3 billion in Q3:2024-25, as against an outflow of US$ 2.7 billion in the corresponding period a year ago.
-
Non-resident deposits (NRI deposits) recorded a net inflow of US$ 3.1 billion, lower than US$ 3.9 billion a year ago.
-
There was a depletion of US$ 37.7 billion to the foreign exchange reserves (on a BoP basis) in Q3:2024-25 as against an accretion of US$ 6.0 billion in Q3:2023-24 (Table 1).
BoP During April-December 2024
-
India’s CAD widened to US$ 37.0 billion (1.3 per cent of GDP) during April-December 2024 from US$ 30.6 billion (1.1 per cent of GDP) during April-December 2023 primarily on account of a higher merchandise trade deficit.
-
Net invisibles receipts were higher during April-December 2024 than a year ago on account of services and transfers.
-
Net FDI inflow at US$ 1.6 billion during April-December 2024 was lower than US$ 7.8 billion during April-December 2023.
-
During April-December 2024, portfolio investment recorded a net inflow of US$ 9.4 billion, lower than US$ 32.7 billion during the corresponding period a year ago.
-
There was a depletion of US$ 13.8 billion to the foreign exchange reserves (on a BoP basis) during April-December 2024.
| Table 1: Major Items of India’s Balance of Payments |
| (US$ billion) |
| |
October- December 2023 PR |
October-December 2024 P |
April – December 2023 PR |
April – December 2024 P |
| |
Credit |
Debit |
Net |
Credit |
Debit |
Net |
Credit |
Debit |
Net |
Credit |
Debit |
Net |
| A. Current Account |
236.0 |
246.4 |
-10.4 |
261.6 |
273.1 |
-11.5 |
689.3 |
719.9 |
-30.6 |
753.2 |
790.2 |
-37.0 |
| 1. Goods |
106.6 |
178.3 |
-71.6 |
109.8 |
189.0 |
-79.2 |
319.8 |
512.7 |
-192.9 |
325.5 |
552.8 |
-227.2 |
| of which: |
|
|
|
|
|
|
|
|
|
|
|
|
| POL |
20.2 |
46.0 |
-25.9 |
12.6 |
48.4 |
-35.7 |
61.9 |
130.0 |
-68.1 |
49.3 |
141.4 |
-92.1 |
| 2. Services |
87.8 |
42.8 |
45.0 |
103.5 |
52.3 |
51.2 |
251.7 |
131.6 |
120.1 |
285.5 |
150.0 |
135.5 |
| 3. Primary Income |
10.1 |
23.2 |
-13.1 |
12.3 |
29.0 |
-16.7 |
31.0 |
65.9 |
-34.9 |
41.3 |
78.6 |
-37.3 |
| 4. Secondary Income |
31.5 |
2.2 |
29.3 |
36.1 |
2.9 |
33.2 |
86.8 |
9.7 |
77.1 |
100.9 |
8.9 |
92.0 |
| B. Capital Account and Financial Account |
216.3 |
205.0 |
11.3 |
320.0 |
309.1 |
10.9 |
603.9 |
573.0 |
30.9 |
898.7 |
862.2 |
36.4 |
| of which: |
|
|
|
|
|
|
|
|
|
|
|
|
| 1. Direct Investment |
18.9 |
14.9 |
4.0 |
20.8 |
23.6 |
-2.8 |
54.7 |
46.9 |
7.8 |
66.2 |
64.6 |
1.6 |
| 2. Portfolio Investment |
125.5 |
113.5 |
12.0 |
171.4 |
182.8 |
-11.4 |
327.2 |
294.5 |
32.7 |
513.4 |
503.9 |
9.4 |
| 3. Other Investments |
65.9 |
62.4 |
3.5 |
83.4 |
90.4 |
-7.0 |
205.2 |
176.9 |
28.2 |
261.9 |
235.5 |
26.4 |
| of which: |
|
|
|
|
|
|
|
|
|
|
|
|
| NRI Deposits |
22.4 |
18.5 |
3.9 |
25.9 |
22.8 |
3.1 |
62.5 |
53.2 |
9.3 |
78.3 |
64.9 |
13.3 |
| ECBs to India |
3.9 |
6.6 |
-2.7 |
11.2 |
6.9 |
4.3 |
21.7 |
20.7 |
1.0 |
32.1 |
21.1 |
11.0 |
| 4. Reserve Assets [Increase (-)/Decrease (+)] |
0.0 |
6.0 |
-6.0 |
37.7 |
0.0 |
37.7 |
0.0 |
32.9 |
-32.9 |
37.7 |
23.8 |
13.8 |
| C. Errors & Omissions (-) (A+B) |
0.0 |
0.9 |
-0.9 |
0.6 |
0.0 |
0.6 |
0.0 |
0.3 |
-0.3 |
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: 2024-2025/2498
|
MIL OSI Economics –