India Q2Fy22 current account deficit at 1.3% of GDP, likely to widen

Central bank says the deficit is mainly due to widening of trade gap and an increase in net outgo of investment income.

India’s current account balance posted a deficit of $ 9.6 billion in the second quarter ended September 2021 (Q2Fy22), forming 1.3 per cent of the country’s gross domestic product (GDP) and reflecting a rise in overseas trade.

The current account was in surplus $ 6.6 billion (0.9 percent of GDP) in the first quarter ended June 2021(Q1Fy22) and $ 15.3 billion (2.4 per cent of GDP) a year (Q1Fy21), said the Reserve Bank of India in a statement.

RBI said the current account deficit (CAD) in Q2Fy22 was mainly due to widening of trade gap to $ 44.4 billion from