According to latest data from RBI, India's current account deficit (CAD) moderated marginally to US$ 11.2 billion (1.2 per cent of GDP) in Q2:2024-25 from US$ 11.3 billion (1.3 per cent of GDP) in Q2:2023-24. Merchandise trade deficit increased to US$ 75.3 billion in Q2:2024-25 from US$ 64.5 billion in Q2:2023-24. Net services receipts increased to US$ 44.5 billion in Q2:2024-25 from US$ 39.9 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as computer services, business services, travel services and transportation services.
Net outgo on the primary income account, primarily reflecting payments of investment income, decreased to US$ 9.5 billion in Q2:2024-25 from US$ 11.6 billion in Q2:2023-24. Private transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 31.9 billion in Q2: 2024-25 from US$ 28.1 billion in Q2:2023-24.In the financial account, net foreign direct investment recorded an outflow of US$ 2.2 billion in Q2:2024-25 as compared with an outflow of US$ 0.8 billion in the corresponding period of 2023-24.
Net inflows under foreign portfolio investment increased to US$ 19.9 billion in Q2: 2024-25 from US$ 4.9 billion in Q2:2023-24. Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 5.0 billion in Q2:2024-25, as against outflows of US$ 1.9 billion in the corresponding period a year ago. Non-resident deposits (NRI deposits) recorded net inflows of US$ 6.2 billion, higher than US$ 3.2 billion a year ago. There was an accretion of US$ 18.6 billion to the foreign exchange reserves (on a BoP basis) in Q2:2024-25, higher than US$ 2.5 billion in Q2:2023-24.
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