Indian CAB sees $5.7-bn surplus in Q4 FY24 after $8.7-bn deficit in Q3

The Q4 FY24 merchandise trade deficit at $50.9 billion was lower than $52.6 billion a year ago.

Net outgo on the primary income account, primarily reflecting payments of investment income, increased to $14.8 billion in Q4 FY24 from $12.6 billion a year ago.

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $32 billion in Q4 FY24, an increase of 11.9 per cent year on year (YoY).

In the financial account, net foreign direct investment flows were worth $2 billion in Q4 FY24 as compared with $6.4 billion a year ago.

Foreign portfolio investment recorded a net inflow of $11.4 billion in Q4 FY24 compared to a net outflow of $1.7 billion during Q4 FY23.

Net inflows under external commercial borrowings to India amounted to $2.6 billion in Q4 FY24 compared with $1.7 billion a year ago.

Non-resident deposits recorded a higher net inflow of $5.4 billion in Q4 FY24 compared to $3.6 billion in Q4 FY23.

India’s current account deficit moderated to $23.2 billion (0.7 per cent of GDP) during FY24 from $67 billion (2 per cent of GDP) during the previous fiscal on the back of a lower merchandise trade deficit, an RBI release said.

Net invisibles receipt was higher during FY24 than a year ago, primarily on account of services and transfers.

During FY24, portfolio investment recorded a net inflow of $44.1 billion as against an outflow of $5.2 billion a year ago.

Net FDI inflow was $9.8 billion during FY24 as compared with $28 billion in FY23.

In FY24, there was an accretion of $63.7 billion to the foreign exchange reserves (on a BoP basis).

Fibre2Fashion News Desk (DS)