Current account logs $5.7-bn surplus in Q4 after 10 quarters
- India’s current account balance recorded a surplus of $5.7 billion (0.6% GDP) in Q4 FY24 as per data released by the Reserve Bank of India (RBI).
Highlights:
- The merchandise trade deficit at $50.9 billion in Q4 FY24 was lower than a year ago and Q4 services exports grew 4.1% on the back of rising software exports, travel and business services.
- India’s current account turned to a welcome surplus in Q4 FY24 after a gap of ten quarters, at $5.7 billion.
- The turnaround to a surplus from a deficit in the year-ago period, was primarily driven by a narrowing in the merchandise trade deficit in Q4 FY24
Higher services receipts
- Net services receipts at $42.7 billion was higher than a year ago, which contributed to the current account surplus in Q4 FY24.
- net outgo on payments of investment income, rose to $14.8 billion.
- Private transfer receipts, mainly representing remittances by overseas Indians was $32 billion, a rise of 11.9%.
Balance of payments
- Overall, India’s FY24 current account deficit moderated to $23.2 billion from $67.0 billion in FY23.
- Net invisible receipt was higher during FY24 than a year ago, primarily on account of services and transfers.
- In FY24, portfolio investment recorded a net inflow of $44.1 billion.
- In FY24 net FDI inflow was $9.8 billion
Prelims Takeaway:
- Balance of Payments
- Current Account