Current account deficit narrows to 2.2 per cent of GDP in third quarter: RBI
[ad_1]
The Reserve Bank of India (RBI) said in the data released on Friday that this decline was mainly due to the reduction in the merchandise trade deficit. The current account deficit (CAD) in the second quarter of 2022-23 was $ 30.9 billion, or 3.7 percent of GDP.
India’s current account deficit narrowed to US $ 18.2 billion, or 2.2 percent of GDP, in the December quarter of FY 2022-23. The current account deficit mainly tells the country’s position on the global trade front. The Reserve Bank of India (RBI) said in the data released on Friday that this decline was mainly due to the reduction in the merchandise trade deficit. The current account deficit (CAD) in the second quarter of 2022-23 was $ 30.9 billion, or 3.7 percent of GDP.
On the other hand, in the December quarter of 2021-22, it was $ 22.2 billion i.e. 2.7 percent of GDP. RBI said, the main reason for the reduction in the current account deficit in the third quarter of 2022-23 is the reduction in the merchandise trade deficit, which decreased from $ 78.3 billion in the second quarter of 2022-23 to $ 72.7 billion. This was also supported by stronger services and private transfer receipts. Services exports registered a year-on-year growth of 24.5 per cent due to increased exports of software, trade and travel services.
Net service receipts increased. Net foreign direct investment declined to $2.1 billion in the December quarter from $4.6 billion in the same period a year ago. Net foreign portfolio investment stood at $4.6 billion in the December quarter of FY 2022-23, as against net outflow of $5.8 billion in the same period last fiscal.
The RBI said net expenditure from the primary income account rose to $12.7 billion from $11.5 billion on a year-on-year basis. Private transfer receipts stood at $30.8 billion in the December quarter, up 31.7 per cent year-on-year. This mainly includes remittances by Indians working abroad. According to RBI data, the current account deficit stood at 2.7 percent of GDP during April-December 2022. A year before this, during April-December 2021, this figure was 1.1 percent.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
[ad_2]
Source link