Reserve Bank of India Governor Shaktikanta Das. File
| Photo Credit: EMMANUAL YOGINI
“With India’s current account deficit (CAD) declining sharply to 1% of GDP in Q2:2023-24 from 3.8% in Q2:2022-23,” RBI Governor Shaktikanta Das on February 8 stated going forward, the online steadiness below providers and remittances would stay in massive surplus, partly offsetting the commerce 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 stated in his assertion.
He stated in accordance with the World Bank, with an estimated $135 billion in inward remittances in 2024, India would stay the biggest recipient of remittances globally.
On the financing aspect, Mr. Das stated the online international direct funding (FDI) stood at $13.5 billion in April-November 2023 as in contrast with $19.8 billion a yr in the past.
“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 $6.7 billion a year ago,” he stated.
“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 .46 Vulnerability indicators suggest greater resilience of India’s external sector. We are confident of comfortably meeting all our external financing requirements,” he additional stated.
Source: www.thehindu.com
