MUMBAI: India’s current account deficit narrowed to $9.2 billion or 1.1% of GDP for the April-June period, the Reserve Bank said on Thursday.
The current account deficit (CAD), which represents the difference between the total amount of money sent abroad and money received from overseas across the economy, stood at $17.9 billion or 2.1% of GDP in the year-ago period. However, the crucial number, representing external sector strength, has widened considerably compared to the $1.3 billion or 0.2% level in the preceding quarter, the RBI said.
“The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit, coupled with a lower surplus in net services and decline in private transfer receipts,” it added. Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services, though was higher on a year-on-year (y-o-y) basis, the central bank said.
The current account deficit (CAD), which represents the difference between the total amount of money sent abroad and money received from overseas across the economy, stood at $17.9 billion or 2.1% of GDP in the year-ago period. However, the crucial number, representing external sector strength, has widened considerably compared to the $1.3 billion or 0.2% level in the preceding quarter, the RBI said.
“The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit, coupled with a lower surplus in net services and decline in private transfer receipts,” it added. Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services, though was higher on a year-on-year (y-o-y) basis, the central bank said.
