What’s the Big Picture?
India’s current account deficit (CAD) remained stable in Q2: 2024-25 at 1.2% of GDP. This indicates flexibility in the economy despite global uncertainties.
Trade & Services: A Mixed Bag
Merchandise trade deficit rose to US$ 75.3 billion, signalling higher imports or slower exports.
On the brighter side, services exports saw a boost, contributing US$ 44.5 billion, driven by IT, travel, and transport sectors.
Remittances Keep Flowing
Indians abroad sent home US$ 31.9 billion, showcasing strong private transfer inflows and global connectivity.
Financial Flows: A Shift in Trends
Foreign Portfolio Investments (FPI) soared to US$ 19.9 billion, a sharp rise from last year.
However, Foreign Direct Investment (FDI) recorded a small net outflow of US$ 2.2 billion, showing areas for improvement.
Reserves Strengthened
India’s foreign exchange reserves grew by US$ 18.6 billion, reflecting a stable financial outlook and stronger economic buffers.
The numbers may vary, but the story remains clear: India’s financial framework is adapting and evolving to meet the demands of a dynamic global landscape.
