Mumbai, June 24 (IANS) India’s current account deficit (CAD) declined to $23.2 billion (0.7 per cent of GDP) during 2023-24 from $67 billion (2 per cent of GDP) during the previous year due to a lower merchandise trade deficit, the RBI said on Monday.
The fall in the current account deficit (CAD) reflects a strengthening of the economic fundamentals as India closed the financial year on March 31, with an accretion of $63.7 billion to foreign exchange reserves.
Net invisibles receipt was higher during 2023-24 than a year ago, primarily on account of services and transfers.
Portfolio investment in the capital markets recorded a net inflow of $44.1 billion against an outflow of $5.2 billion a year ago.
Net FDI inflow was $9.8 billion during 2023-24 as compared with $28 billion in 2022-23.
The RBI data also showed that India’s current account balance recorded a surplus of $5.7 billion (0.6 per cent of GDP) in the January-March quarter of 2023-24 as against a deficit of $8.7 billion (1 per cent of GDP) in the preceding October-December quarter of 2023-24 and $1.3 billion (0.2 per cent of GDP) the fourth quarter of 2022-23, reflecting an improvement in the country’s macroeconomic position.
The merchandise trade deficit at $50.9 billion in Q4 2023-24 was lower than $52.6 billion a year ago.
Services exports grew by 4.1 per cent on a year-on-year basis in Q4 2023-24 on the back of rising exports of software, travel and business services.
Net services receipt at $42.7 billion was higher than its level a year ago ($39.1 billion), which contributed to the surplus in the current account balance during Q4 2023-24.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $32.0 billion, an increase of 11.9 per cent over their level a year ago.
The net outgo on the primary income account, primarily reflecting payments of investment income, increased to $14.8 billion from $12.6 billion a year ago.
In the financial account, net foreign direct investment flows were $2.0 billion in Q4 2023-24 as compared with $6.4 billion a year ago.
Foreign portfolio investment in the capital markets recorded a net inflow of $11.4 billion in Q4 2023-24 as against a net outflow of $1.7 billion during Q4 2022-23.
Net inflows under external commercial borrowings to India amounted to $2.6 billion in Q4 2023-24 as compared with $1.7 billion a year ago.
Non-resident deposits recorded a higher net inflow of $5.4 billion than $3.6 billion in Q4 2022-23.
There was an accretion of foreign exchange reserves to the tune of $30.8 billion in Q4 2023-24 as compared with an accretion of $5.6 billion a year ago.
–IANS
sps/pgh
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
