Key Points

The robust performance has reversed the current account deficit of $11.3 billion (1.1 per cent of GDP) in the preceding third quarter (October-December) of 2024-25. It also represents a more than two-fold increase from a surplus of $4.6 billion (0.5 per cent of GDP) in the same quarter last year.

For the full year 2024-25, India’s current account deficit at $23.3 billion (0.6 per cent of GDP) was lower than $26 billion (0.7 per cent of GDP) during 2023-24, primarily due to higher net invisibles receipts, the RBI said.

Net invisibles receipts were higher during 2024-25 than a year ago on account of services and personal transfers.

While merchandise exports moderated, the surplus in Q4 (Jan-March) was driven by strong services exports and a lower net outgo on the primary income account, RBI data shows.

Net services receipts increased to $53.3 billion in Q4 2024-25 from $42.7 billion in the same quarter of the previous year. Services exports have risen on a year-on-year basis in major categories such as business services and computer services, the RBI said.

Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to $11.9 billion in Q4:2024-25 from $14.8 billion in the same quarter of 2023-24.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion in the Jan-March quarter of 2024-25 from $31.3 billion in the same quarter of the previous year.

In the financial account, foreign direct investment (FDI) recorded a net inflow of $0.4 billion in the Jan-March as compared to an inflow of $2.3 billion in the same period of 2023-24.

Foreign portfolio investment (FPI) recorded a net outflow of $5.9 billion in Q4 as against a net inflow of $11.4 billion in the same quarter of the previous year.

Net inflows under external commercial borrowings (ECBs) to India amounted to $ 7.4 billion in Q4 2024-25, as compared to $2.6 billion in the corresponding period a year ago, according to the RBI statement.

Non-resident deposits (NRI deposits) recorded a net inflow of $2.8 billion in Q4 2024-25, lower than $5.4 billion a year ago.

There was an accretion of $8.8 billion to the foreign exchange reserves (on a BoP basis) in Q4 2024-25 as compared to an accretion of $30.8 billion in the same quarter Q4 2023-24

Net inflow under FDI at $1.0 billion during 2024-25 was lower than $ 10.2 billion during 2023-24. FPI recorded a net inflow of $3.6 billion during the year, lower than $44.1 billion a year ago, the RBI statement added.

- IANS