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 "Trade, container")
Trade, container(Photo: Shutterstock)
The country’s current account deficit widened marginally to $ 9.7 billion or 1.1 per cent of GDP in April-June 2024, as against $ 8.9 billion or 1 per cent in the year-ago period, Reserve Bank of India said on Monday.
The crucial number representing the country’s external sector strength has come on the heels of a surplus of $ 4.6 billion or 0.5 per cent of GDP recorded in the preceding January-March quarter.
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The Reserve Bank attributed the year-on-year widening in current account deficit to a rise in merchandise trade gap which was recorded at $ 65.1 billion in Q1 FY25 as compared to $ 56.7 billion in the year-ago period.
Net services receipts increased to $ 39.7 billion during the quarter under review from $ 35.1 billion a year ago, the RBI said, adding that computer services, business services, travel services and transportation services have seen a rise.
However, there was a sharp moderation in the net foreign portfolio investment to $ 0.9 billion from $ 15.7 billion in the year ago, the RBI said.
Net inflows under external commercial borrowings (ECBs) came down to $ 1.8 billion during the first quarter, and was lower than $ 5.6 billion registered in the corresponding period a year ago.
In what can be seen as a jump in remittances by the diaspora, the private transfer receipts increased to $ 29.5 billion in Q1 FY25, from $ 27.1 billion witnessed in the same period of last fiscal.
Net foreign direct investment inflows increased to $ 6.3 billion from $ 4.7 billion on year, the RBI said.
Payments of investment income, captured under the net outgo on the primary income account, rose to $ 10.7 billion from the last year’s $ 10.2 billion.
Non-resident deposits (NRI deposits) recorded net inflows of $ 4 billion, and was higher than $ 2.2 billion a year ago, the RBI said.
There was an accretion of $ 5.2 billion to the foreign exchange reserves on a BoP (balance of payments) basis in Q1 FY25 as compared to $ 24.4 billion in Q1 FY24, the RBI said.
First Published: Sep 30 2024 | 5:10 PM IS
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