Current account deficit up by $2.8 bn in Apr-Dec

The country's current account deficit rose by $2.8 billion to $30.3 billion during April-December 2009 over the same period last year, mainly on account of the global financial meltdown that hit exports and other inflows, the Reserve Bank of India (RBI) said today.

Receipts from invisibles, which include inflows from services like tourism, declined 7.7 per cent during the first nine months of this fiscal, against an increase of 22.2 per cent during the year-ago period, the apex bank data said.

The decline in invisibles was "mainly due to lower receipts under almost all components of services coupled with lower investment income receipts", the RBI said in its quarterly report on balance of payments.

Trade balance (difference between exports and imports), alone was in the negative territory at $89.51 billion during the reporting period, lower than $98.44 billion for the same period last fiscal.

But receipts from invisibles were lower at $59.18 billion during the first nine months of this fiscal, compared to $70.93 billion in the same period of last fiscal.

Invisible payments, meanwhile, witnessed a growth of 3.7 per cent at $57.53 billion, during April-December 2009, compared to the same period in 2008.

Exports during the first nine months of this fiscal were $124.47 billion, while imports were $213.98 billion. The corresponding figures for the same period in 2008-09 were $150.52 billion and $248.96 billion, respectively.

The RBI, however, said the merchandise trade deficit declined to $89.5 billion during the reporting period compared to $98.4 billion during the same period in 2008.

The RBI said private transfer of receipts, comprising mainly remittances from Indians working overseas, increased to $40.8 billion during April-December 2009 against $37.1 billion during the same period previous year.