India's current account deficit remained flat in the July–September period at $11.2 billion as increased receipts from services offset a rise in merchandise trade deficit.
The CAD came in at 1.2% of the gross domestic product, as per the Reserve Bank of India data on Friday. The deficit in the year-ago period was $11.3 billion or 1.3% of the GDP.
Merchandise trade deficit widened to $75.3 billion in the second quarter from $64.5 billion in the same period last year. For the first half of the current fiscal, the deficit came in at $140.4 billion, up from $121.2 billion last year.
Net services receipts increased to $44.5 billion from $39.9 billion a year ago. Services exports have risen on a year-on-year basis across major categories, such as computer services, business services, travel services and transportation services, the RBI said.
The exports fetched India $84.2 billion in the first two quarters of the current fiscal, up from $75.1 billion last year.
Other Highlights
Private transfer receipts that are remittances from Indians working abroad increased to $31.9 billion from $28.1 billion. NRI deposits recorded net inflows of $6.2 billion, higher than $3.2 billion a year ago.
Net foreign direct investment recorded an outflow of $2.2 billion in the second quarter as compared with an outflow of $0.8 billion in the corresponding period of 2023–24.
Net inflows under foreign portfolio investment increased to $19.9 billion from $4.9 billion. Net inflows under external commercial borrowings to India amounted to $5 billion, as against outflows of $1.9 billion in the year-ago period.
India's foreign exchange reserves on a balance-of-payment basis jumped $18.6 billion in the September quarter, compared to $2.5 billion last year.
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