You are here: Home » News-CM » Economy » News
Business Standard

India's current account deficit at 2.4% in Q1 of FY2019

Business Finance

Capital Market 

Balance of Payment deficit at US$ 11.3 billion in Q1 of FY2019

India's current account deficit (CAD) stood at US$ 15.8 billion (2.4% of GDP) in Q1 of 2018-19 as compared with US$ 15.0 billion (2.5% of GDP) in Q1 of 2017-18.

The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at US$ 45.7 billion as compared with US$ 41.9 billion a year ago.

Net services receipts increased by 2.1% 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 US$ 18.8 billion, increasing by 16.9% from their level a year ago.

In the financial account, net foreign direct investment at US$ 9.7 billion in Q1 of 2018-19 was higher than US$ 7.1 billion in Q1 of 2017-18.

Portfolio investment recorded net outflow of US$ 8.1 billion in Q1 of 2018-19 - as compared with an inflow of US$ 12.5 billion in Q1 last year - on account of net sales in both the debt and equity markets.

Net receipts on account of non-resident deposits amounted to US$ 3.5 billion in Q1 of 2018-19 as compared with US$ 1.2 billion a year ago.

In Q1 of 2018-19, there was a depletion of US$ 11.3 billion of the foreign exchange reserves (on BoP basis) as against an accretion of US$ 11.4 billion in Q1 of 2017-18.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 07 2018. 20:59 IST