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07
December 2018
 |
India's current account deficit (The Total Investment & Insurance
Solutions)
India's current account deficit (CAD) widened
to 2.9 per cent of the GDP in the second quarter of the fiscal compared to 1.1
per cent in the year-ago period, mainly due to a large trade deficit, the RBI
said Friday.The Total Investment &
Insurance Solutions
The
CAD, or the difference between outflow and inflow of foreign exchange in the
country's current account, was USD 19.1 billion during the quarter ended
September 30, 2018.
It
increased from USD 6.9 billion or 1.1 per cent of GDP in the second quarter of
2017-18. The CAD stood at USD 15.9 billion (2.4 per cent of GDP) in the
April-June quarter.
"India's current account deficit (CAD)
at US$ 19.1 billion (2.9 per cent of GDP) in Q2 of 2018-19 increased from US$
6.9 billion (1.1 per cent of GDP) in Q2 of 2017-18 and US$ 15.9 billion (2.4
per cent of GDP) in the preceding quarter," the RBI said.
The CAD has increased to 2.7 per cent of GDP
in first half of 2018-19 from 1.8 per cent in the corresponding period of
2017-18 on the back of widening of the trade deficit.
As per
the central bank, the widening of the CAD on a year-on-year basis was primarily
on account of a higher trade deficit at USD 50 billion as compared to USD 32.5
billion a year ago.
RBI's preliminary data on India's balance of
payments (BoP) for July-September 2018-19 further revealed that net services
receipts increased by 10.2 per cent on a y-o-y basis, mainly on the back of a
rise in net earnings from software and financial services.
Private transfer receipts, mainly
representing remittances by Indians employed overseas, amounted to USD 20.9
billion during the quarter, increasing by 19.8 per cent from their level a year
ago. The Total Investment &
Insurance Solutions
In the financial account, net foreign direct
investment at USD 7.9 billion in the second quarter of 2018- 19 moderated from
USD 12.4 billion in the similar period of last fiscal. RBI said portfolio
investment recorded net outflow of USD 1.6 billion as compared to an inflow of
USD 2.1 billion in the second quarter last year on account of net sales in both
the debt and equity markets.
Further, net receipts on account of
non-resident deposits increased to USD 3.3 billion in the second 12/7/2018
Current account deficit widens to 2.9% of GDP in Q2 of 2018-19 from USD 0.7 billion a year ago. In
July-September this fiscal, there was a depletion of USD 1.9 billion of the
foreign exchange reserves (on BoP basis) as against an accretion of USD 9.5
billion in the year ago period. The
Total Investment & Insurance Solutions
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