Data Alert
Oct-Dec CAD narrows to $11.5 bln, workers' remittances up 20% YoY
This story was originally published at 18:59 IST on 28 March 2025
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--RBI: India Oct-Dec current account deficit $11.5 bln
--RBI: India Oct-Dec CAD $11.5 bln vs $10.4 bln a year ago
--RBI: India Oct-Dec CAD $11.5 bln vs $16.7 bln in Jul-Sept
--RBI: India Oct-Dec CAD at 1.1% of GDP vs 1.8% of GDP in Jul-Sept
--RBI: Oct-Dec saw $37.7 bln of net depletion to FX reserves on BoP basis
--RBI: India Apr-Dec CAD $37.0 bln vs $30.6 bln in Apr-Dec 2023
--RBI: India Apr-Dec CAD at 1.3% of GDP vs 1.1% of GDP in Apr-Dec 2023
--RBI: Oct-Dec workers' gross remittances at $23.57 bln, up 20.1% YoY
--RBI: Apr-Dec workers' gross remittances at $63.34 bln, up 20.4% YoY
NEW DELHI - India's current account deficit narrowed to $11.46 billion in Oct-Dec from $16.67 billion in Jul-Sept, although it was slightly higher than $10.42 billion in the third quarter of 2023-24 (Apr-Mar), data released on Friday by the Reserve Bank of India showed.
The sequential decline in the current account deficit was driven by a fall in the merchandise trade deficit to $79.15 billion in Oct-Dec from $84.28 billion and a rise in the services trade surplus to $51.21 billion from $44.63 billion. "Services exports have risen on a y-o-y (year-on-year) basis across major categories such as business services, computer services, transportation services and travel services," the RBI said.
In percentage terms, while the current account deficit was unchanged in Oct-Dec from a year ago at 1.1% of GDP, it was down from 1.8% of GDP in Jul-Sept.
For the first three quarters of FY25, the current account deficit stood at $37.02 billion, up from $30.63 billion in Apr-Dec 2023. In percentage terms, the deficit edged up to 1.3% of GDP in Apr-Dec from 1.1% a year ago, "primarily on account of a higher merchandise trade deficit", the RBI said.
Oct-Dec saw the foreign exchange reserves get depleted by $37.7 billion on Balance of Payment basis, the RBI said. This compared to an accretion of $6.0 billion in the same quarter last year.
Workers' remittances, a key contributor to India's foreign exchange earnings, were 20.1% higher year-on-year in Oct-Dec at $23.57 billion on a gross basis. The increase was similar for Apr-Dec, at 20.4%, as these remittances rose to $63.34 billion. End
US$1 = INR 85.47
Reported by Siddharth Upasani
Edited by Vandana Hingorani
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