Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2023-24, are presented in Statements I (BPM6 format) and II (old format).
Key Features of India’s BoP in Q2:2023-24
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India’s current account balance recorded a deficit of US$ 8.3 billion (1.0 per cent of GDP) in Q2:2023-24, lower than US$ 9.2 billion (1.1 per cent of GDP) in Q1:2023-24 and US$ 30.9 billion (3.8 per cent of GDP) a year ago [i.e., Q2:2022-23]1.
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Underlying the lower current account deficit on a year-on-year (y-o-y) basis in Q2:2023-24 was the narrowing of merchandise trade deficit to US$ 61.0 billion from US$ 78.3 billion in Q2:2022-23.
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Services exports grew by 4.2 per cent on a y-o-y basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and on a y-o-y basis.
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Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 12.2 billion from US$ 11.8 billion a year ago.
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Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 28.1 billion, an increase of 2.6 per cent from their level during the corresponding period a year ago.
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In the financial account, net foreign direct investment witnessed an outflow of US$ 0.3 billion as against an inflow of US$ 6.2 billion in Q2:2022-23.
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Foreign portfolio investment recorded net inflow of US$ 4.9 billion, lower than US$ 6.5 billion during Q2:2022-23.
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External commercial borrowings to India recorded net outflow of US$ 1.8 billion in Q2:2023-24 as compared with net outflow of US$ 0.5 billion in Q2:2022-23.
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Non-resident deposits recorded net inflow of US$ 3.2 billion as compared with net inflow of US$ 2.5 billion in Q2:2022-23.
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There was an accretion of foreign exchange reserves (on a BoP basis) to the tune of US$ 2.5 billion in Q2:2023-24 as against a depletion of US$ 30.4 billion in Q2:2022-23 (Table 1).
BoP During April-September 2023 (H1:2023-24)
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India’s current account deficit moderated to 1.0 per cent of GDP in H1:2023-24 from 2.9 per cent of GDP in H1:2022-23 on the back of a lower merchandise trade deficit.
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Net invisibles receipts were higher in H1:2023-24 on a y-o-y basis primarily on account of higher net services receipts.
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Net FDI inflow at US$ 4.8 billion in H1:2023-24 was lower than US$ 19.6 billion in H1:2022-23.
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Portfolio investment recorded a net inflow of US$ 20.7 billion in H1:2023-24 as against an outflow of US$ 8.1 billion a year ago.
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In H1:2023-24, there was an accretion of US$ 27.0 billion to the foreign exchange reserves (on a BoP basis).
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/1541
1 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55933. For longer time series data, please see: CIMS DBIE (rbi.org.in) ›Statistics › External Sector › International Trade › Quarterly/Yearly.
