FX.co ★ India Current Account Gap Widens Less than Anticipated

In the last quarter of 2024, India reported a current account deficit amounting to $11.5 billion, reflecting an increase from the revised figure of $10.4 billion recorded in the same period the previous year. However, this figure was slightly under the projected deficit of $12 billion. The merchandise trade deficit expanded to $79.2 billion, up from $71.6 billion the prior year, while the services surplus saw a rise to $51.2 billion, compared to $45 billion earlier. There has been an uptick in services exports across key sectors, including business services, computer services, transportation, and travel services. On the other hand, the primary income deficit climbed to $16.7 billion from $13.1 billion, whereas the secondary income surplus increased significantly to $33.2 billion, a substantial jump from $239.3 million a year ago. Additionally, personal transfer receipts, primarily from remittances by Indians working abroad, rose to $35.1 billion from $30.6 billion.