India records 0.6% current account surplus in March quarter on higher service exports, remittances

India's current account surplus of $5.7 billion in Q4 FY24 marks a significant improvement from previous deficits.

India recorded a current account surplus of $5.7 billion or 0.6% of GDP in the March quarter, the Reserve Bank of India said on June 24.

In the year-ago period, the current account deficit stood at $1.3 billion or 0.2% of GDP, and the same was $8.7 billion or 1% of GDP in the preceding quarter ending December 2023.

For FY24, the current account deficit narrowed to $23.2 billion or 0.7% of GDP against $67 billion or 2% of GDP in FY23, the RBI said in a release on the Developments in India's Balance of Payments.

In January-March 2024, the merchandise trade deficit stood at $50.9 billion, lower than the $52.6 billion a year ago.

Net services receipts at USD 42.7 billion were higher than the $39.1 billion on the back of a 4.1% growth in the segment, the central bank said, adding that this helped in swinging the current account into the surplus territory.

Net outgo on the primary income account, mainly reflecting payments of investment income, increased to $14.8 billion from $12.6 billion a year ago, the data released by the RBI said.

Private transfer receipts, which mainly represent remittances by Indians employed overseas, grew 11.9 per cent to USD 32 billion in the March quarter.