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Informist, Friday, Dec. 27, 2024

--RBI: India Jul-Sept current account deficit $11.2 bln

--RBI: India Jul-Sept CAD $11.2 bln vs $11.3 bln CAD year ago

--RBI: India Jul-Sept CAD $11.2 bln vs $10.2 bln quarter ago

--RBI: Jul-Sept net accretion to FX reserves $18.6 bln on BoP basis

--RBI: India Apr-Sept CAD $21.4 bln vs $20.2 bln year ago

--RBI:Jul-Sept net portfolio investment inflows $19.9 bln vs $4.9 bln yr ago

--RBI: India Jul-Sept net FDI outflow $2.2 bln vs $0.8 bln year ago

NEW DELHI – India's current account deficit widened to $11.16 billion in Jul-Sept, according to data released Friday by the Reserve Bank of India. The current account fell into a deficit of $10.22 billion in Jul-Sept after posting a surplus of $4.59 billion in Jan-Mar. The deficit stood at $11.26 billion in the second quarter of 2024-25 (Apr-Mar).

In percentage terms, the current account deficit in Jul-Sept amounted to 1.2% of GDP as against 1.3% a year ago.

The increase in the current account deficit in Jul-Sept was driven by an increase in the merchandise trade deficit to $75.32 billion from $65.13 billion in Apr-Jun and $64.54 billion last year. At the same time, India's services trade surplus rose to $44.55 billion last quarter from $39.68 billion in Apr-Jun, cancelling out some of the deficit on the goods trade front.

The RBI said in a statement that India's services exports have risen across major categories such as computer services, business services, travel services, and transport services.

In Jul-Sept 2023, the services trade surplus stood at $39.94 billion.

Apart from the services trade surplus, a big contributor to foreign inflows was workers' remittances, which rose to $17.27 billion in Jul-Sept on a net basis from $16.38 billion in Apr-Jun and $14.62 billion a year ago. Meanwhile, the net accretion to India's foreign exchange reserves in the second quarter of FY25 was $18.6 billion on a Balance of Payments basis, sharply up from $2.5 billion in Jul-Sept 2023.

Meanwhile, net portfolio investment inflows rose to $19.9 billion in Jul-Sept, the RBI said, from $4.9 billion last year. However, net foreign direct investment continued to be in the negative and was larger in the quarter gone by, rising to $2.2 billion from $0.8 billion a year ago.

For the first half of FY25, the current account was in the red by $21.38 billion compared with $20.21 billion a year ago.  End

US$1 = INR 85.53

Reported by Siddharth Upasani

Edited by Akul Nishant Akhoury

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