For the full year FY25, the country recorded a lower current account deficit of $23.3 bn (0.6% of GDP) as compared to $26.0 bn (0.7% of GDP) in FY24

FPJ News Service mumbai

India’s current account balance recorded a surplus of $13.5 billion (1.3% of GDP) in Q424-25 as compared with $4.6 billion (0.5% of GDP) in Q423-24, and against a deficit of $11.3 billion (1.1% of GDP) in Q324-25, RBI said on Friday.

The growth in surplus can be attributed to increased receipts in services exports. Net services receipts increased to $53.3 billion in Q424-25 from $42.7 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as business services and computer services.

Merchandise trade deficit at $59.5 billion in Q424-25 was higher than $52.0 billion in Q423-24. However, it moderated from $79.3 billion in Q324-25.

Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to $11.9 billion in Q424-25 from $14.8 billion in Q423-24.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion from $31.3 billion.

In the financial account, foreign direct investment (FDI) recorded a net inflow of $0.4 billion in Q424-25 as compared to an inflow of $2.3 billion in the corresponding period of 2023-24.

Foreign portfolio investment recorded a net outflow of $5.9 billion as against a net inflow of $11.4 billion.

Net inflows under external commercial borrowings (ECBs) to India amounted to $7.4 billion as compared to $2.6 billion in the corresponding period a year ago.

Non-resident deposits (NRI deposits) recorded a net inflow of $2.8 billion, lower than $5.4 billion a year ago.

There was an accretion of $8.8 billion to the foreign exchange reserves (on a BoP basis) in Q424-25 as compared to an accretion of $30.8 billion.

India’s current account deficit at $23.3 billion (0.6% of GDP) during 2024-25 was lower than $26.0 billion (0.7% of GDP) during 2023-24, primarily due to higher net invisible receipts.

Net invisible receipts were higher during 2024-25 than a year ago on account of services and personal transfers. Net inflow under FDI at $1.0 billion during 2024-25 was lower than $10.2 billion during 2023-24. During 2024-25, FPI recorded a net inflow of $3.6 billion, lower than $44.1 billion a year ago. There was a depletion of $5.0 billion in the foreign exchange reserves during 2024-25, RBI data revealed.