India's Q2 Current Account Deficit Widens To 2.9% of GDP

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The country's current account deficit (CAD) widened to 2.9 percent of the gross domestic product (GDP) in the July-September quarter. During the same quarter last year, it stood at 1.1 percent. RBI (Reserve Bank of India) said that it was mainly due to the higher trade deficit of $50 billion when compared to $32.5 billion in the same period last year.

    India's Q2 Current Account Deficit Widens To 2.9% of GDP
     

    CAD measures the difference between outflow and inflow of foreign exchange in the country's current account. It Increased to $19.1 billion during the September ended quarter when compared to $6.9 billion in September 2017. CAD for the April-June 2018 quarter was at $15.9 billion or 2.4 percent of GDP.

    "India's CAD at $19.1 billion (2.9 percent of GDP) in the second quarter of 2018-19 increased from $6.9 billion (1.1 percent of GDP) in Q2 of 2017-18 and $15.9 billion (2.4 percent of GDP) in the preceding quarter," the central bank said.

    As for the first half of the 2018-19, CAD has increased to 2.7 percent of GDP from 1.8 percent in the corresponding period of 2017-18.

    RBI's preliminary data on India's balance of payments for the quarter under review showed that the net services receipts were up by 10.2 percent on a yearly basis, mainly due to a rise in net earnings from software and financial services.

    Private transfer receipts, that mainly represent remittances from Indians employed overseas, amounted to $20.9 billion during the quarter, increasing by 19.8 percent from their level a year ago. The net foreign direct investment reduced to $7.9 billion in the second quarter of 2018-19 from $12.4 billion last year. Portfolio investments recorded net outflow of $1.6 billion when compared with an inflow of $2.1 billion last year on account of net sales in both the debt and equity markets.

    Net receipts on account of non-resident deposits rose to $3.3 billion from $0.7 billion a year ago. For the same quarter, there was a depletion of $1.9 billion of the foreign exchange reserves as against an increase of $9.5 billion in September 2017.

    Read more about: cad gdp
    Story first published: Saturday, December 8, 2018, 9:44 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more