Q3 FY24 Indian current account deficit tapers to $10.5 bn; 1.2% of GDP

The narrowing was much sharper compared to $16.8 billion, or 2 per cent of GDP, for Q3 FY23, RBI said in its data on balance of payments.

CAD has moderated to 1.2 per cent of GDP in the first nine months of this fiscal from 2.6 per cent of GDP in the corresponding period of FY23 on the back of a lower merchandise trade deficit, the central bank noted.

The merchandise trade deficit for Q3 FY24 was worth $71.6 billion—marginally higher than $71.3 billion in the year-ago period.

Private transfer receipts, primarily remittances by Indians employed overseas, were worth $31.4 billion in Q3 FY24—an increase of 2.1 per cent over the level during the year ago period.

The net inflow of foreign direct investment (FDO) during the quarter was $4.2 billion compared to $2 billion in the year-ago period, while foreign portfolio investments recorded a net inflow of $12 billion—much higher than the $4.6 billion in Q3 FY23.

External commercial borrowings recorded a net outflow of $2.6 billion in Q3 FY24—marginally wider than $2.5 billion in the year-ago period.

Non-resident deposits recorded a higher net inflow of $3.9 billion during the quarter than $2.6 billion a year ago.

Fibre2Fashion News Desk (DS)