India’s current account balance recorded a surplus of $5.7 billion (0.6% GDP) in Q4 FY24 against a deficit of $1.3 billion (0.2% GDP) a year ago as per data released by the Reserve Bank of India (RBI)
The merchandise trade deficit at $50.9 billion in Q4 FY24 was lower than $52.6 billion a year ago and Q4 services exports grew 4.1% year-on-year (YoY) on the back of rising software exports, travel and business services
Why the surplus
Net services receipts at $42.7 billion was higher than a year ago ($39.1 billion), which contributed to the current account surplus in Q4 FY24
Private transfer receipts, mainly representing remittances by overseas Indians was $32 billion, a rise of 11.9% YoY.
In the financial account, net foreign direct investment flows were $2 billion in Q4 FY24 compared with $6.4 billion a year ago.
Net foreign portfolio investment recorded an inflow of $11.4 billion in Q4 FY24 from a net outflow of $1.7 billion during Q4 FY23.
Net inflows under external commercial borrowings amounted to $2.6 billion in Q4 FY24 compared with $1.7 billion a year ago.
Non-resident deposits recorded a higher net inflow of $5.4 billion than $3.6 billion in Q4 FY23.
There was an accretion of foreign exchange reserves to the tune of $30.8 billion excluding valuation effects in Q4 FY24 compared with $5.6 billion a year ago.
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