Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2024-25, are presented in Statements I and II. Key Features of India’s BoP in Q3:2024-25
- India’s current account deficit (CAD) increased to US$ 11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from US$ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from US$ 16.7 billion (1.8 per cent of GDP)1 in Q2:2024-25.2
- Merchandise trade deficit increased to US$ 79.2 billion in Q3:2024-25 from US$ 71.6 billion in Q3:2023-24.
- Net services receipts increased to US$ 51.2 billion in Q3:2024-25 from US$ 45.0 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as business services, computer services, transportation services and travel services.
- Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 16.7 billion in Q3:2024-25 from US$ 13.1 billion in Q3:2023-24.
- Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 35.1 billion in Q3: 2024-25 from US$ 30.6 billion in Q3:2023-24.
- In the financial account, foreign direct investment recorded a net outflow of US$ 2.8 billion in Q3:2024-25 as against an inflow of US$ 4.0 billion in the corresponding period of 2023-24.
- Foreign portfolio investment recorded a net outflow of US$ 11.4 billion in Q3:2024-25 as against an inflow of US$ 12.0 billion in Q3:2023-24.
- Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 4.3 billion in Q3:2024-25, as against an outflow of US$ 2.7 billion in the corresponding period a year ago.
- Non-resident deposits (NRI deposits) recorded a net inflow of US$ 3.1 billion, lower than US$ 3.9 billion a year ago.
- There was a depletion of US$ 37.7 billion to the foreign exchange reserves (on a BoP basis) in Q3:2024-25 as against an accretion of US$ 6.0 billion in Q3:2023-24 (Table 1).
BoP During April-December 2024
- India’s CAD widened to US$ 37.0 billion (1.3 per cent of GDP) during April-December 2024 from US$ 30.6 billion (1.1 per cent of GDP) during April-December 2023 primarily on account of a higher merchandise trade deficit.
- Net invisibles receipts were higher during April-December 2024 than a year ago on account of services and transfers.
- Net FDI inflow at US$ 1.6 billion during April-December 2024 was lower than US$ 7.8 billion during April-December 2023.
- During April-December 2024, portfolio investment recorded a net inflow of US$ 9.4 billion, lower than US$ 32.7 billion during the corresponding period a year ago.
- There was a depletion of US$ 13.8 billion to the foreign exchange reserves (on a BoP basis) during April-December 2024.
Table 1: Major Items of India's Balance of Payments |
(US$ billion) |
| October- December 2023 PR | October-December 2024 P | April – December 2023 PR | April – December 2024 P |
| Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net |
A. Current Account | 236.0 | 246.4 | -10.4 | 261.6 | 273.1 | -11.5 | 689.3 | 719.9 | -30.6 | 753.2 | 790.2 | -37.0 |
1. Goods | 106.6 | 178.3 | -71.6 | 109.8 | 189.0 | -79.2 | 319.8 | 512.7 | -192.9 | 325.5 | 552.8 | -227.2 |
of which: | | | | | | | | | | | | |
POL | 20.2 | 46.0 | -25.9 | 12.6 | 48.4 | -35.7 | 61.9 | 130.0 | -68.1 | 49.3 | 141.4 | -92.1 |
2. Services | 87.8 | 42.8 | 45.0 | 103.5 | 52.3 | 51.2 | 251.7 | 131.6 | 120.1 | 285.5 | 150.0 | 135.5 |
3. Primary Income | 10.1 | 23.2 | -13.1 | 12.3 | 29.0 | -16.7 | 31.0 | 65.9 | -34.9 | 41.3 | 78.6 | -37.3 |
4. Secondary Income | 31.5 | 2.2 | 29.3 | 36.1 | 2.9 | 33.2 | 86.8 | 9.7 | 77.1 | 100.9 | 8.9 | 92.0 |
B. Capital Account and Financial Account | 216.3 | 205.0 | 11.3 | 320.0 | 309.1 | 10.9 | 603.9 | 573.0 | 30.9 | 898.7 | 862.2 | 36.4 |
of which: | | | | | | | | | | | | |
1. Direct Investment | 18.9 | 14.9 | 4.0 | 20.8 | 23.6 | -2.8 | 54.7 | 46.9 | 7.8 | 66.2 | 64.6 | 1.6 |
2. Portfolio Investment | 125.5 | 113.5 | 12.0 | 171.4 | 182.8 | -11.4 | 327.2 | 294.5 | 32.7 | 513.4 | 503.9 | 9.4 |
3. Other Investments | 65.9 | 62.4 | 3.5 | 83.4 | 90.4 | -7.0 | 205.2 | 176.9 | 28.2 | 261.9 | 235.5 | 26.4 |
of which: | | | | | | | | | | | | |
NRI Deposits | 22.4 | 18.5 | 3.9 | 25.9 | 22.8 | 3.1 | 62.5 | 53.2 | 9.3 | 78.3 | 64.9 | 13.3 |
ECBs to India | 3.9 | 6.6 | -2.7 | 11.2 | 6.9 | 4.3 | 21.7 | 20.7 | 1.0 | 32.1 | 21.1 | 11.0 |
4. Reserve Assets [Increase (-)/Decrease (+)] | 0.0 | 6.0 | -6.0 | 37.7 | 0.0 | 37.7 | 0.0 | 32.9 | -32.9 | 37.7 | 23.8 | 13.8 |
C. Errors & Omissions (-) (A+B) | 0.0 | 0.9 | -0.9 | 0.6 | 0.0 | 0.6 | 0.0 | 0.3 | -0.3 | 0.6 | 0.0 | 0.6 |
PR: Partially Revised; and P: Preliminary. |
Note: Total of sub-components may not tally with aggregate due to rounding off. |
(Puneet Pancholy)
Chief General Manager Press Release: 2024-2025/2498
1 CAD for Q2:2024-25 was revised upwards to US$ 16.7 billion from US$ 11.2 billion earlier primarily due to an upward adjustment of customs data on merchandise imports. For Q1:2024-25, the CAD was revised downwards to US$ 8.9 billion from US$ 10.2 billion majorly due to a downward adjustment of customs data on merchandise imports.2 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay?prid=59395. For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector › International Trade › Quarterly/Yearly. |
