Remittances And Services Exports Provide Resilience To India`s External Sector

Published on Oct 25, 2023 12:18

Finance Ministry stated in a latest update that in H1 FY24, net foreign portfolio investment inflows in India were US$ 16.5 billion as against net outflows of US$ 7.8 billion in H1 FY23. This along with consistent surpluses on account of remittances (though moderating by 8 per cent Q-o-Q in Q1FY24) and services exports provide resilience to India`s external sector. Further, India‟s foreign exchange reserves have been consistently cushioning the external financing needs and were at US$ 584.7 billion as of 6th October 2023. Despite continuing global headwinds, India`s external sector is poised for better growth prospects following improving trade prospects in 2024. India`s lower vulnerability in external debt indicators, compared with its emerging market economy peers lends further strength to a robust external sector.