Indias current account slips into deficit in Q2 CAD now at 13 pc of GDP
Mumbai Dec 31 PTI Indias current account slipped into a deficit of USD 96 billion or 13 per cent of GDP in the September quarter the Reserve Bank said on Friday The current account which records the value of exports and imports of both goods and services along with international transfers of capital was in a surplus mode both in the quarter-ago and year-ago periods Indias current account surplus had stood at USD 66 billion or 09 per cent of GDP in the April-June 2021 quarter while in the year-ago period Q2FY22 the surplus had stood at USD 153 billion or 24 per cent of the GDP the data said For the first half of the fiscal year India recorded a current account deficit of 02 per cent of GDP as against a surplus of 3 per cent in the year-ago period on the back of a sharp increase in the trade deficit the RBI said in the data on Balance of Payments In the reporting quarter the deficit was mainly due to widening of trade deficit to USD 444 billion from USD 307 billion in the preceding quarter and an increase in net outgo of investment income the RBI said Net services receipts decreased marginally over the preceding quarter but increased on a year-on-year basis on the back of robust performance of the exports of computer and business services it added Private transfer receipts which mainly represent remittances by Indians employed overseas increased 37 per cent over the year-ago period to USD 211 billion it said The net foreign direct investment FDI during the quarter recorded an inflow of USD 95 billion much lower than the USD244 billion a year ago it said adding that for the first half of the fiscal the FDI inflows stood at USD 212 billion as against USD 239 billion for the year-ago period Net foreign portfolio investment during the September quarter was USD 39 billion as compared to USD 7 billion in the year-ago period For the first half the fiscal the portfolio investment recorded a net inflow of USD 43 billion which was lower than the USD 76 billion a year ago External commercial borrowings on a net basis recorded an inflow of USD 41 billion in the quarter as against an outflow of USD 37 billion a year ago while non-resident deposits recorded a net outflow of USD08 billion as against an inflow of USD 19 billion in the year-ago period the RBI said There was an accretion of USD 312 billion in the forex reserves on a BoP basis which included Special Drawing Rights allocation of USD 1786 billion by the International Monetary Fund on August 23 it said PTI AA MKJ
Mumbai Dec 31 PTI Indias current account slipped into a deficit of USD 96 billion or 13 per cent of GDP in the September quarter the Reserve Bank said on Friday The current account which records the value of exports and imports of both goods and services along with international transfers of capital was in a surplus mode both in the quarter-ago and year-ago periods Indias current account surplus had stood at USD 66 billion or 09 per cent of GDP in the April-June 2021 quarter while in the year-ago period Q2FY22 the surplus had stood at USD 153 billion or 24 per cent of the GDP the data said For the first half of the fiscal year India recorded a current account deficit of 02 per cent of GDP as against a surplus of 3 per cent in the year-ago period on the back of a sharp increase in the trade deficit the RBI said in the data on Balance of Payments In the reporting quarter the deficit was mainly due to widening of trade deficit to USD 444 billion from USD 307 billion in the preceding quarter and an increase in net outgo of investment income the RBI said Net services receipts decreased marginally over the preceding quarter but increased on a year-on-year basis on the back of robust performance of the exports of computer and business services it added Private transfer receipts which mainly represent remittances by Indians employed overseas increased 37 per cent over the year-ago period to USD 211 billion it said The net foreign direct investment FDI during the quarter recorded an inflow of USD 95 billion much lower than the USD244 billion a year ago it said adding that for the first half of the fiscal the FDI inflows stood at USD 212 billion as against USD 239 billion for the year-ago period Net foreign portfolio investment during the September quarter was USD 39 billion as compared to USD 7 billion in the year-ago period For the first half the fiscal the portfolio investment recorded a net inflow of USD 43 billion which was lower than the USD 76 billion a year ago External commercial borrowings on a net basis recorded an inflow of USD 41 billion in the quarter as against an outflow of USD 37 billion a year ago while non-resident deposits recorded a net outflow of USD08 billion as against an inflow of USD 19 billion in the year-ago period the RBI said There was an accretion of USD 312 billion in the forex reserves on a BoP basis which included Special Drawing Rights allocation of USD 1786 billion by the International Monetary Fund on August 23 it said PTI AA MKJ
