Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2023-24, are presented in Statements I and II. Key Features of India’s BoP in Q3:2023-24 -
India’s current account balance recorded a deficit of US$ 10.5 billion (1.2 per cent of GDP) in Q3:2023-24, lower than US$ 11.4 billion (1.3 per cent of GDP) in Q2:2023-241 and US$ 16.8 billion (2.0 per cent of GDP) a year ago [i.e., Q3:2022-23]2. -
The merchandise trade deficit at US$ 71.6 billion was marginally higher than US$ 71.3 billion during Q3:2022-23. -
Services exports grew by 5.2 per cent on a y-o-y basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and from a year ago that helped cushion the current account deficit. -
Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 13.2 billion from US$ 12.7 billion a year ago. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 31.4 billion, an increase of 2.1 per cent over their level during the corresponding period a year ago. -
In the financial account, foreign direct investment recorded a net inflow of US$ 4.2 billion as compared with a net inflow of US$ 2.0 billion in Q3:2022-23. -
Foreign portfolio investment recorded a net inflow of US$ 12.0 billion, higher than US$ 4.6 billion during Q3:2022-23. -
External commercial borrowings to India recorded a net outflow of US$ 2.6 billion in Q3:2023-24 as compared with a net outflow of US$ 2.5 billion a year ago. -
Non-resident deposits recorded a higher net inflow of US$ 3.9 billion than US$ 2.6 billion a year ago. -
There was an accretion of foreign exchange reserves (on a BoP basis) to the tune of US$ 6.0 billion in Q3:2023-24 as compared with an accretion of US$ 11.1 billion a year ago (Table 1). BoP During April-December 2023 -
India’s current account deficit moderated to 1.2 per cent of GDP during April-December 2023 from 2.6 per cent of GDP in the corresponding period a year ago on the back of a lower merchandise trade deficit. -
Net invisibles receipts were higher during April-December 2023 than a year ago, primarily on account of services and transfers. -
Net FDI inflow at US$ 8.5 billion during April-December 2023 was lower than US$ 21.6 billion during April-December 2022. -
During April-December 2023, portfolio investment recorded a net inflow of US$ 32.7 billion as against an outflow of US$ 3.5 billion during the corresponding period a year ago. -
In April-December 2023, there was an accretion of US$ 32.9 billion to the foreign exchange reserves (on a BoP basis that excludes valuation effects). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | October-December 2022 | October-December 2023 P | April-December 2022 | April-December 2023 P | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 227.5 | 244.3 | -16.8 | 235.9 | 246.4 | -10.5 | 683.9 | 749.5 | -65.6 | 689.1 | 720.1 | -31.0 | | 1. Goods | 105.6 | 176.9 | -71.3 | 106.7 | 178.3 | -71.6 | 340.3 | 553.0 | -212.7 | 319.9 | 512.7 | -192.8 | | Of which: | | | | | | | | | | | | | | POL | 22.7 | 52.0 | -29.3 | 20.2 | 46.0 | -25.8 | 73.6 | 158.6 | -85.1 | 61.9 | 130.2 | -68.3 | | 2. Services | 83.4 | 44.7 | 38.7 | 87.8 | 42.8 | 45.0 | 239.5 | 135.3 | 104.2 | 251.7 | 131.6 | 120.1 | | 3. Primary Income | 7.6 | 20.3 | -12.7 | 10.0 | 23.2 | -13.2 | 20.1 | 53.5 | -33.3 | 30.7 | 66.1 | -35.4 | | 4. Secondary Income | 30.9 | 2.4 | 28.5 | 31.5 | 2.2 | 29.3 | 84.0 | 7.8 | 76.2 | 86.8 | 9.7 | 77.1 | | B. Capital Account and Financial Account | 176.3 | 158.5 | 17.8 | 215.4 | 204.1 | 11.3 | 549.5 | 482.5 | 67.1 | 603.2 | 571.4 | 31.7 | | Of which: | | | | | | | | | | | | | | Change in Reserve (Increase (-)/Decrease (+)) | 0 | 11.1 | -11.1 | 0 | 6.0 | -6.0 | 14.7 | 0 | 14.7 | 0 | 32.9 | -32.9 | | C. Errors & Omissions (-) (A+B) | 0 | 1.0 | -1.0 | 0 | 0.8 | -0.8 | 0 | 1.4 | -1.4 | 0 | 0.7 | -0.7 | | P: Preliminary | | Note: Total of sub-components may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2023-2024/2116
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