Posted 12/26/2023, 12:22:28 PM
India's Current Account Deficit Narrows on Lower Trade Gap, Higher Remittances
- India's current account deficit narrowed to 1% of GDP ($8.3 billion) in Q2 FY2024, down from 1.1% in previous quarter and 3.8% a year ago
- Decline largely due to narrowing merchandise trade deficit from $78.3 billion in Q2 FY2023 to $61 billion in Q2 FY2024
- Services exports grew 4.2% year-on-year; net services receipts rose sequentially and year-on-year
- Private transfer receipts (remittances) stood at $28.1 billion in Q2 FY2024, up 2.6% versus last year
- Foreign portfolio investments saw net inflows of $4.9 billion in Q2 FY2024, lower than $6.5 billion inflows in Q2 FY2023