India’s current account deficit (CAD) stood at $11.2 billion, or 1.2% of GDP, in the July-September quarter (Q2FY25), marginally lower than the revised $11.3 billion (1.3% of GDP) recorded in the same period a year ago, according to the Reserve Bank of India (RBI).
The CAD widened from $9.7 billion (1.1% of GDP) in the April-June quarter, reflecting an increase in the merchandise trade deficit, which rose to $75.3 billion compared with the corresponding quarter last year.
Net services receipts climbed to $44.5 billion in Q2FY25, up from $39.9 billion a year earlier, driven by robust growth across key categories such as computer services, business services, travel, and transportation.
Non-resident Indian (NRI) deposits registered net inflows of $6.2 billion, nearly doubling the $3.2 billion seen in Q2FY24. Private transfer receipts, primarily remittances by Indians working abroad, rose to $31.9 billion from $28.1 billion in the same period last year.
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The financial account showed mixed trends, with net foreign direct investment (FDI) recording an outflow of $2.2 billion, compared to an outflow of $0.8 billion a year earlier.
Conversely, foreign portfolio investment (FPI) saw a sharp uptick, with net inflows rising to $19.9 billion, significantly higher than the $4.9 billion recorded in Q2FY24.
India’s balance of payments (BoP) recorded a robust surplus of $18.6 billion, up from $2.5 billion in the year-ago period, highlighting resilience despite global headwinds.
