India’s current account deficit dips to $10.5 billion in October-December: RBI

India’s present account deficit declined to USD 10.5 billion or 1.2 per cent of the GDP in October-December quarter from USD 11.4 billion within the earlier three months and USD 16.8 billion a 12 months again, the Reserve Financial institution of India (RBI) stated on Tuesday.

Internet FDI influx at USD 8.5 billion throughout April-December 2023 was decrease than USD 21.6 billion throughout April-December 2022, it stated.

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Additionally, accretion of overseas trade reserves (on a BoP foundation) was at USD 6.0 billion in October-December (third quarter of present monetary 12 months that ends on March 31) in comparison with an accretion of USD 11.1 billion a 12 months in the past.

The merchandise commerce deficit at USD 71.6 billion was marginally greater than USD 71.3 billion throughout the third quarter of 2022-23.

Providers exports grew by 5.2 per cent on a year-on-year foundation on the again of rising exports of software program, enterprise and journey providers. Internet providers receipts elevated each sequentially and from a 12 months in the past that helped cushion the present account deficit.

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Within the monetary account, overseas direct funding recorded a web influx of USD 4.2 billion, greater than double of web influx of USD 2.0 billion in Q3 of 2022-23.

International portfolio funding recorded a web influx of USD 12.0 billion within the quarter, greater than USD 4.6 billion a 12 months again.

Exterior business borrowings to India recorded a web outflow of USD 2.6 billion in October-December as in comparison with a web outflow of USD 2.5 billion a 12 months in the past.

Non-resident deposits recorded the next web influx of USD 3.9 billion than USD 2.6 billion a 12 months in the past.