Mumbai, Feb 8 (ANI): Reserve Bank of India (RBI) Governor Shaktikanta Das addresses a press conference on monetary policy, in Mumbai on Thursday. (ANI Photo)
| Photo Credit: ANI
With India’s current account deficit (CAD) declining sharply to 1% of GDP in Q2 FY24 from 3.8% in Q2:FY 23, RBI governor Skatikanta Das on Thursday said going ahead CAD for FY24 and FY25 would be eminently manageable.
He said the net balance under services and remittances in FY24 would remain in large surplus, partly offsetting the trade deficit.
“India’s services exports remained resilient in October-December 2023, driven by software, business and travel services. Moreover, with around 10.2% share in world telecommunications, computer and information services exports, India is a significant player in the world software business,” Mr. Das said in his monetary policy statement.
He said according to the World Bank, with an estimated $135 billion in inward remittances in 2024, India would remain the largest recipient of remittances globally. CAD for 2023-24 and 2024-25 is expected to be eminently manageable,” Mr. Das said.
On the financing side, Mr. Das said the net foreign direct investment (FDI) stood at $13.5 billion in April-November 2023 as compared with $19.8 billion a year earlier.
Foreign portfolio investment (FPI) witnessed a sharp turnaround during 2023-24 (up to February 6) with net FPI inflows of $32.4 billion as against net outflows of US$ 6.7 billion a year earlier, he said.
Net accretions to non-resident deposits and net inflows under external commercial borrowings were also higher during the year, he added.
“As on February 2, 2024, India’s foreign exchange reserves stood at $622.5 billion. Vulnerability indicators suggest greater resilience of India’s external sector. We are confident of comfortably meeting all our external financing requirements,” he further said.
