India's CAD at 1.2% of GDP in Q3, down from 1.3% in Q2FY4 and 2% in Q3FY23
CAD) narrowed in the October-December quarter largely due to higher service exports, the Reserve Bank of India said on Tuesday.
The current account deficit stood at $10.5 billion, or 1.2% of GDP, in the third quarter of fiscal 2023-24 compared with $11.4 billion or 1.3% of GDP in the preceding quarter.
The merchandise trade deficit at $ 71.6 billion was marginally higher than $ 71.3 billion during Q3:2022-23.
Services exports grew by 5.2 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 from a year ago that helped cushion the current account deficit, said the central bank.
Net outgo on the primary income account, primarily reflecting payments of investment income, increased to $13.2 billion from $12.7 billion a year ago.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $ 31.4 billion, an increase of 2.1 per cent over their level during the corresponding period a year ago.
In the financial account, foreign direct investment recorded a net inflow of $ 4.2 billion as compared with a net inflow of $ 2.0 billion in Q3:2022-23.
During the third quarter of 2023-2024, there was an increase in foreign portfolio investment, with a net influx of $12.0 billion, surpassing the $4.6 billion recorded in the same period of the previous fiscal year.
In the third quarter of 2023-24, external commercial borrowings directed towards India experienced a net deficit of $2.6
