Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2024-25, are presented in Statements I and II. Key Features of India’s BoP in Q4:2024-25
- India’s current account balance recorded a surplus of US$ 13.5 billion (1.3 per cent of GDP) in Q4:2024-25 as compared with US$ 4.6 billion (0.5 per cent of GDP) in Q4:2023-24 and against a deficit of US$ 11.3 billion (1.1 per cent of GDP) in Q3:2024-25.1
- Merchandise trade deficit at US$ 59.5 billion in Q4:2024-25 was higher than US$ 52.0 billion in Q4:2023-24. However, it moderated from US$ 79.3 billion in Q3:2024-25.
- Net services receipts increased to US$ 53.3 billion in Q4:2024-25 from US$ 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.
- Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to US$ 11.9 billion in Q4:2024-25 from US$ 14.8 billion in Q4:2023-24.
- Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 33.9 billion in Q4:2024-25 from US$ 31.3 billion in Q4:2023-24.
- In the financial account, foreign direct investment (FDI) recorded a net inflow of US$ 0.4 billion in Q4:2024-25 as compared to an inflow of US$ 2.3 billion in the corresponding period of 2023-24.
- Foreign portfolio investment (FPI) recorded a net outflow of US$ 5.9 billion in Q4:2024-25 as against a net inflow of US$ 11.4 billion in Q4:2023-24.
- Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 7.4 billion in Q4:2024-25, as compared to US$ 2.6 billion in the corresponding period a year ago.
- Non-resident deposits (NRI deposits) recorded a net inflow of US$ 2.8 billion in Q4:2024-25, lower than US$ 5.4 billion a year ago.
- There was an accretion of US$ 8.8 billion to the foreign exchange reserves (on a BoP basis) in Q4:2024-25 as compared to an accretion of US$ 30.8 billion in Q4:2023-24 (Table 1).
BoP During 2024-25
- India’s current account deficit at US$ 23.3 billion (0.6 per cent of GDP) during 2024-25 was lower than US$ 26.0 billion (0.7 per cent of GDP) during 2023-24, primarily due to higher net invisibles receipts.
- Net invisibles receipts were higher during 2024-25 than a year ago on account of services and personal transfers.
- Net inflow under FDI at US$ 1.0 billion during 2024-25 was lower than US$ 10.2 billion during 2023-24.
- During 2024-25, FPI recorded a net inflow of US$ 3.6 billion, lower than US$ 44.1 billion a year ago.
- There was a depletion of US$ 5.0 billion in the foreign exchange reserves (on a BoP basis) during 2024-25.
Table 1: Major Items of India's Balance of Payments |
(US$ billion) |
| January-March 2024 PR | January-March 2025 P | 2023-24 PR | 2024-25 P |
| Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net |
A. Current Account | 253.5 | 248.9 | 4.6 | 264.9 | 251.4 | 13.5 | 942.8 | 968.9 | -26.0 | 1018.3 | 1041.6 | -23.3 |
1. Goods | 121.6 | 173.6 | -52.0 | 116.3 | 175.8 | -59.5 | 441.4 | 686.4 | -244.9 | 441.8 | 729.0 | -287.2 |
of which: | | | | | | | | | | | | |
POL | 22.2 | 48.8 | -26.5 | 14.1 | 44.3 | -30.2 | 84.2 | 178.7 | -94.6 | 63.3 | 185.8 | -122.4 |
2. Services | 89.4 | 46.7 | 42.7 | 102.0 | 48.7 | 53.3 | 341.1 | 178.3 | 162.8 | 387.5 | 198.7 | 188.8 |
3. Primary Income | 10.5 | 25.3 | -14.8 | 11.9 | 23.8 | -11.9 | 41.5 | 91.2 | -49.7 | 53.4 | 101.8 | -48.4 |
4. Secondary Income | 32.1 | 3.4 | 28.7 | 34.7 | 3.2 | 31.5 | 118.9 | 13.0 | 105.9 | 135.6 | 12.1 | 123.5 |
B. Capital Account and Financial Account | 248.0 | 253.3 | -5.2 | 255.8 | 270.2 | -14.4 | 851.9 | 826.3 | 25.6 | 1154.5 | 1132.8 | 21.7 |
of which: | | | | | | | | | | | | |
1. Direct Investment | 20.2 | 17.9 | 2.3 | 18.5 | 18.1 | 0.4 | 74.9 | 64.8 | 10.2 | 84.2 | 83.2 | 1.0 |
2. Portfolio Investment | 138.9 | 127.5 | 11.4 | 126.0 | 131.8 | -5.9 | 466.1 | 422.0 | 44.1 | 639.3 | 635.8 | 3.6 |
3. Other Investments | 82.7 | 67.7 | 14.9 | 106.2 | 98.8 | 7.4 | 287.8 | 244.7 | 43.1 | 368.6 | 334.2 | 34.5 |
of which: | | | | | | | | | | | | |
NRI Deposits | 26.0 | 20.7 | 5.4 | 26.3 | 23.5 | 2.8 | 88.6 | 73.9 | 14.7 | 104.5 | 88.4 | 16.2 |
ECBs to India | 11.7 | 9.2 | 2.6 | 15.6 | 8.2 | 7.4 | 33.5 | 29.9 | 3.5 | 47.8 | 29.4 | 18.4 |
4. Reserve Assets [Increase (-)/Decrease (+)] | 0.0 | 30.8 | -30.8 | 0.0 | 8.8 | -8.8 | 0.0 | 63.7 | -63.7 | 37.7 | 32.6 | 5.0 |
C. Errors & Omissions (-) (A+B) | 0.6 | 0.0 | 0.6 | 0.9 | 0.0 | 0.9 | 1.6 | 1.2 | 0.4 | 2.0 | 0.4 | 1.5 |
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: 2025-2026/611 |
