Current account deficit (CAD) increased to $57.2 billion or 2.1 per cent of GDP in FY19 as against 1.8 per cent in the previous year, the Reserve Bank said Friday. 
The CAD, which is the net of foreign exchange inflows and outflows, had stood at $48.7 billion in FY18.

For FY19, the deficit widened despite a narrowing of the same in the March quarter to 0.7 per cent of GDP or $4.6 billion, as against $27.7 billion or 2.7 per cent in the December quarter and $13 billion or 1.8 per cent in the March 2018 quarter, the central bank data showed.

Overall trade performance was the prime influencer for both the contraction in CAD for the March quarter as well as a widening for the full year.

A lower trade deficit of $35.2 billion in the March quarter, compared to $41.6 billion in the year-ago period helped in CAD contraction, it said.

Similarly, an increase in the trade deficit to $180.3 billion for the year as a whole as against $160 billion in the year-ago period led to the widening of the CAD in FY19, the central bank said.

Net services receipts increased 5.8 per cent to $21.3 billion on the back of a rise in net earnings from telecommunications, computer and information services during the March quarter.

Private transfer receipts, representing mainly the remittances by expat Indians, declined by 0.9 per cent to $17.9 billion in the March quarter, it said.

It can be noted that inflows from the diaspora have been increasing for many years now, making the country the biggest beneficiary of remittances globally.

The net foreign direct investment stood at $6.4 billion in March quarter, the same level as the year-ago period, and rose marginally to $30.7 billion for the year as a whole.

Foreign portfolio investment recorded net inflow of $9.4 billion in March quarter versus $2.3 billion in the year-ago period on account of net purchases in both debt and equity markets, the RBI said.

However, for the entire year as a whole, net FPI flows dipped sharply to $2.4 billion as against $22.1 billion in the year-ago period.

The net inflows on account of external commercial borrowings jumped to $7.2 billion in the March quarter from $1 billion a year ago.

From a forex reserves perspective, there was a $3.3 billion depletion during the year, the central bank said.

Current account deficit (CAD) increased to $57.2 billion or 2.1 per cent of GDP in FY19 as against 1.8 per cent in the previous year, the Reserve Bank said Friday.

Current account deficit (CAD) increased to $57.2 billion or 2.1 per cent of GDP in FY19 as against 1.8 per cent in the previous year, the Reserve Bank said Friday. The CAD, which is the net of foreign exchange inflows and outflows, had stood at $48.7 billion in FY18. For FY19, the deficit widened despite a narrowing of the same in the March quarter to 0.7 per cent of GDP or $4.6 billion, as against $27.7 billion or 2.7 per cent in the December quarter and $13 billion or 1.8 per cent in the March 2018 quarter, the central bank data showed. Overall trade performance was the prime influencer for both the contraction in CAD for the March quarter as well as a widening for the full year. A lower trade deficit of $35.2 billion in the March quarter, compared to $41.6 billion in the year-ago period helped in CAD contraction, it said. Similarly, an increase in the trade deficit to $180.3 billion for the year as a whole as against $160 billion in the year-ago period led to the widening of the CAD in FY19, the central bank said. Net services receipts increased 5.8 per cent to $21.3 billion on the back of a rise in net earnings from telecommunications, computer and information services during the March quarter. Private transfer receipts, representing mainly the remittances by expat Indians, declined by 0.9 per cent to $17.9 billion in the March quarter, it said. It can be noted that inflows from the diaspora have been increasing for many years now, making the country the biggest beneficiary of remittances globally. The net foreign direct investment stood at $6.4 billion in March quarter, the same level as the year-ago period, and rose marginally to $30.7 billion for the year as a whole. Foreign portfolio investment recorded net inflow of $9.4 billion in March quarter versus $2.3 billion in the year-ago period on account of net purchases in both debt and equity markets, the RBI said. However, for the entire year as a whole, net FPI flows dipped sharply to $2.4 billion as against $22.1 billion in the year-ago period. The net inflows on account of external commercial borrowings jumped to $7.2 billion in the March quarter from $1 billion a year ago. From a forex reserves perspective, there was a $3.3 billion depletion during the year, the central bank said.

India's Current Account Deficit inches up to 2.1% to $57.2 billion

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 CAD, or the difference between outflow and inflow of foreign exchange in the country's current account, was $19.1 billion during the quarter ended September 30, 2018.

It increased from $6.9 billion or 1.1 per cent of GDP in the second quarter of 2017-18. The CAD stood at $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 $50 billion as compared to $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 year-on-year 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 $20.9 billion during the quarter, increasing by 19.8 per cent from their level a year ago.

In the financial account, net foreign direct investment at $7.9 billion in the second quarter of 2018-19 moderated from $12.4 billion in the similar period of last fiscal.

RBI said portfolio investment recorded net outflow of $1.6 billion as compared to an inflow of $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 $3.3 billion in the second quarter of 2018-19 from $0.7 billion a year ago.

In July-September this fiscal, there was a depletion of $1.9 billion of the foreign exchange reserves (on BoP basis) as against an accretion of $9.5 billion in the year-ago period.&nbsp;

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.

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 CAD, or the difference between outflow and inflow of foreign exchange in the country's current account, was $19.1 billion during the quarter ended September 30, 2018. It increased from $6.9 billion or 1.1 per cent of GDP in the second quarter of 2017-18. The CAD stood at $15.9 billion (2.4 per cent of GDP) in the April-June quarter. "India's current account deficit (CAD) at US$ 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 $50 billion as compared to $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 year-on-year 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 $20.9 billion during the quarter, increasing by 19.8 per cent from their level a year ago. In the financial account, net foreign direct investment at $7.9 billion in the second quarter of 2018-19 moderated from $12.4 billion in the similar period of last fiscal. RBI said portfolio investment recorded net outflow of $1.6 billion as compared to an inflow of $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 $3.3 billion in the second quarter of 2018-19 from $0.7 billion a year ago. In July-September this fiscal, there was a depletion of $1.9 billion of the foreign exchange reserves (on BoP basis) as against an accretion of $9.5 billion in the year-ago period.

Current account deficit widens to 2.9% of GDP in Q2

Finance Minister Arun Jaitley Saturday said there are some more steps on the anvil to narrow the current account deficit (CAD) and bolster forex inflows, news agency PTI reported.

The government has taken some steps and some more measures are likely to narrow CAD, Jaitley said at the HT Leadership Summit in Delhi, the report added.

Enunciating some of the steps taken recently, he said the government cut the borrowing target for the current fiscal by Rs 70,000 crore and allowed oil companies to raise USD 10 billion in one year.

(With PTI inputs)&nbsp;

Finance Minister Arun Jaitley Saturday said there are some more steps on the anvil to narrow the current account deficit (CAD) and bolster forex inflows, news agency PTI reported.

Finance Minister Arun Jaitley Saturday said there are some more steps on the anvil to narrow the current account deficit (CAD) and bolster forex inflows, news agency PTI reported. The government has taken some steps and some more measures are likely to narrow CAD, Jaitley said at the HT Leadership Summit in Delhi, the report added. Enunciating some of the steps taken recently, he said the government cut the borrowing target for the current fiscal by Rs 70,000 crore and allowed oil companies to raise USD 10 billion in one year. (With PTI inputs)

Some more steps likely to narrow CAD, says Arun Jaitley

India&#39;s April-June current account deficit widened to its highest in four years as imports surged, but strong capital inflows comfortably financed the gap, data from the Reserve Bank of India showed on Friday. 
 
The current account deficit widened to 2.4 percent of gross domestic product, or $14.3 billion, as imports pushed the trade deficit to $41.2 billion from $23.8 billion in the same period a year ago. 
 
In the quarter ending in June last year, the current account deficit was 0.1 percent or $401 million. It is now at its highest level since the June quarter of 2013. 
 
The widening of the year-on-year deficit was primarily due to a larger increase in merchandise imports relative to exports, the RBI said in its release. 
 
While imports rose, some export-oriented sectors also slowed after India imposed its new goods and services tax (GST) in July, adding to the current account gap, analysts said. 
 
Analysts expect the current account deficit to narrow as exports pick up, but capital flows are likely to slow as the foreign investment limits for debt have been fully used up.&nbsp; 
 
&quot;It appears the last month`s transition to GST had affected some export sectors, but that is expected to normalise going ahead,&quot; said A. Prasanna, economist&nbsp;at ICICI Securities Primary Dealership. He said he expected the full-year current account deficit to be 1.5 per cent of GDP. 
 
Despite a wider current account gap, the balance of payments surplus was $11.4 billion in April-June, compared with $6.97 billion a year ago, helped by strong dollar inflows that boosted the rupee 0.43 percent during the quarter. 
 
India`s capital surplus, which includes foreign direct investment and portfolio inflows, stood at $25.4 billion compared with a $7.18 billion surplus a year ago.

The current account deficit widened to 2.4% of the GDP, or $14.3 billion, as imports pushed the trade deficit to $41.2 billion from $23.8 billion

India's April-June current account deficit widened to its highest in four years as imports surged, but strong capital inflows comfortably financed the gap, data from the Reserve Bank of India showed on Friday. The current account deficit widened to 2.4 percent of gross domestic product, or $14.3 billion, as imports pushed the trade deficit to $41.2 billion from $23.8 billion in the same period a year ago. In the quarter ending in June last year, the current account deficit was 0.1 percent or $401 million. It is now at its highest level since the June quarter of 2013. The widening of the year-on-year deficit was primarily due to a larger increase in merchandise imports relative to exports, the RBI said in its release. While imports rose, some export-oriented sectors also slowed after India imposed its new goods and services tax (GST) in July, adding to the current account gap, analysts said. Analysts expect the current account deficit to narrow as exports pick up, but capital flows are likely to slow as the foreign investment limits for debt have been fully used up. "It appears the last month`s transition to GST had affected some export sectors, but that is expected to normalise going ahead," said A. Prasanna, economist at ICICI Securities Primary Dealership. He said he expected the full-year current account deficit to be 1.5 per cent of GDP. Despite a wider current account gap, the balance of payments surplus was $11.4 billion in April-June, compared with $6.97 billion a year ago, helped by strong dollar inflows that boosted the rupee 0.43 percent during the quarter. India`s capital surplus, which includes foreign direct investment and portfolio inflows, stood at $25.4 billion compared with a $7.18 billion surplus a year ago.

June quarter current account deficit on four-year high as imports surge

India&#39;s current account deficit in the January-March quarter narrowed to $300 million, or 0.1 per cent of gross domestic product, from $7.1 billion, or 1.3 per cent of GDP in the previous quarter, the central bank said on Thursday. 
 
The balance of payments surplus in January-March was $3.3 billion, compared to a surplus of $4.1 billion in October-December, according to the Reserve Bank of India. 
(Reuters)

The three-month deficit came down to $300 million from previous quarter's deficit of $7.1 billion

India's current account deficit in the January-March quarter narrowed to $300 million, or 0.1 per cent of gross domestic product, from $7.1 billion, or 1.3 per cent of GDP in the previous quarter, the central bank said on Thursday. The balance of payments surplus in January-March was $3.3 billion, compared to a surplus of $4.1 billion in October-December, according to the Reserve Bank of India. (Reuters)

India's Jan-March current account deficit narrows to 0.1% of GDP

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current account-deficit

India's Current Account Deficit inches up to 2.1% to $57.2 billion

Current account deficit widens to 2.9% of GDP in Q2

Some more steps likely to narrow CAD, says Arun Jaitley

June quarter current account deficit on four-year high as imports surge

India's Jan-March current account deficit narrows to 0.1% of GDP