The country's current account deficit (CAD) declined marginally to $11.2 billion in the July-September quarter of 2024-25. This is 1.2 percent of the gross domestic product (GDP). This information was given in the data released by the reserve bank of india (RBI) on Friday. CAD, which reflects the country's external payment scenario, was $11.3 billion or 1.3 percent of GDP during the second quarter of 2023-24. RBI said, "India's CAD narrowed marginally to $11.2 billion (1.2 per cent of GDP) in the second quarter of 2024-25 from $11.3 billion (1.3 per cent of GDP) in the second quarter of 2023-24. "The current account deficit stood at $21.4 billion or 1.2 per cent of GDP during April-September (first half of 2024-25), as against $20.2 billion (1.2 per cent of GDP) in the same period a year ago. According to RBI data on balance of payments, the merchandise trade deficit widened to $75.3 billion in the second quarter of 2024-25 from $64.5 billion in the same quarter of 2023-24.

Net service receipts rose to $44.5 billion in the second quarter of 2024-25 from $39.9 billion in the same period a year ago. service exports increased year-on-year in major categories such as computer services, business services, travel services and transport services.

According to the data, private transfer receipts, mainly related to remittances sent by indians working abroad, increased to $31.9 billion in the July-September quarter of 2024-25 from $28.1 billion in the second quarter of 2023-24. The RBI said in the financial accounts that there was a withdrawal of $2.2 billion in the net foreign direct investment (FDI) item in the second quarter of 2024-25, as against $0.8 billion in the same period of 2023-24. Net inflows under foreign portfolio investment (FPI) increased to $19.9 billion in the second quarter of 2024-25 from $4.9 billion in the same period of the previous fiscal.

According to RBI data, net invisible receipts (medical tourism, international investment income, consultancy services, etc.) stood at $119.0 billion in the first half of 2024-25, as against $101 billion in the same period of the previous fiscal. This was mainly due to higher net service receipts. Apart from this, net FDI inflows stood at $4.4 billion in the first half of 2024-25 as against $3.9 billion in the first half of 2023-24. FPIs recorded a net inflow of $20.8 billion in the first half of 2024-25, as against $20.7 billion a year ago. RBI said that foreign exchange reserves (on a balance of payments basis) increased by $23.8 billion in the first half of 2024-25.