India recorded a current account surplus of $5.7 billion or 0.6% of GDP in the January-March quarter of the fiscal year 2023-24, the Reserve Bank of India said on June 24.
Key points
- In the year-ago period, the current account deficit stood at $1.3 billion or 0.2% of GDP, and the same was $8.7 billion or 1% of GDP in the preceding quarter ending December 2023.
- Current account balance is the difference between the sum of exports of goods and services as well as income receivable, on the one hand, and the sum of imports and income payable on the other.
- In January-March 2024, the merchandise trade deficit stood at $50.9 billion, lower than the $52.6 billion a year ago. Net services receipts at USD 42.7 billion were higher than the $39.1 billion. It helped in swinging the current account into the surplus territory.
- Net outgo on the primary income account, mainly reflecting payments of investment income, increased to $14.8 billion from $12.6 billion a year ago.
- Private transfer receipts, which mainly represent remittances by Indians employed overseas, grew 11.9 per cent to USD 32 billion in the March quarter.
- The non-resident deposits also surged to $5.4 billion in January-March compared to $3.6 billion in the year-ago period.
- Net foreign direct investment flows were $2 billion in Q4 FY24 against $6.4 billion a year ago. Foreign portfolio investment recorded a net inflow of $11.4 billion during the quarter compared to a net outflow of $1.7 billion a year ago.
- Net inflows under external commercial borrowings to India were $2.6 billion against $1.7 billion.
