India's current account deficit narrows to 2% of GDP in June quarter

India’s current account deficit (CAD) for the first quarter ended June contracted to 2 per cent of the gross domestic product (GDP) on a year-on-year basis, primarily on account of higher invisible receipts at $31.9 billion, as compared with $29.9 billion a year ago, data released by the RBI showed. 

“Net services receipts increased by 7.3 per cent on a year-on-year basis, mainly on the back of a rise in net earnings from travel, financial services and telecommunications, computer and information services,” the RBI said in its statement. 

Private transfer receipts, mainly representing remittances, rose 6.2 per cent to $19.9 billion.