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India's BoP strengthened by robust inflows from NRI deposits, external commercial borrowing in last quarter
India's Balance of Payments improved significantly in Q2 FY25. Strong inflows from Foreign Portfolio Investments, External Commercial Borrowings, and Non-Resident Indian deposits drove this improvement. Despite an increase in Foreign Direct Investment outflows, capital account surpluses rose. Investor confidence and favorable global financial conditions supported these trends, helping to strengthen India's external finances.
India's Balance of Payments (BoP) saw a significant improvement in the second quarter driven by strong inflows from Foreign Portfolio Investments (FPIs), External Commercial Borrowings (ECBs), and Non-Resident Indian (NRI) deposits, according to a report by Bank of Baroda.
The report highlighted a notable increase in the capital account surplus, which rose to USD 11.9 billion in Q2 FY25 from USD 10.3 billion in Q2 FY24.
It said "India's balance of payments recorded an accretion of USD 18.6bn in Q2 FY25, compared with USD 2.5bn in Q2 FY24. This was supported by robust inflows from FPIs, ECBs and NRI deposits".
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