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

High oil prices widen India's Q2 current account deficit to $19.1 bn

IANS  |  Mumbai 

Higher and gold imports widened India's current account deficit (CAD) to $19.1 billion during the second quarter of 2018-19 from $15.9 billion in the preceding quarter and $6.9 billion in the corresponding period of 2017-18, the of (RBI) data showed on Friday.

"India's at $19.1 billion (2.9 per cent of GDP) in Q2 of 2018-19 increased from $6.9 billion (1.1 per cent of GDP) in Q2 of 2017-18 and $15.9 billion (2.4 per cent of GDP) in the preceding quarter," the RBI said in its statement on developments in India's Q2 balance of payments (BoP).

"The widening of the on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at $50 billion as compared with $32.5 billion a year ago."

According to the RBI, net services receipts increased by 10.2 per cent on a y-o-y basis mainly on the back of a rise in net earnings from software and

"Private transfer receipts, mainly representing remittances by employed overseas, amounted to $20.9 billion, increasing by 19.8 per cent from their level a year ago," the RBI said.

"In the financial account, net foreign direct investment at $7.9 billion in Q2 of 2018-19 moderated from $12.4 billion in Q2 of 2017-18."

In addition, the portfolio investment recorded net outflow of $1.6 billion in Q2 of 2018-19 -- as compared with an inflow of $2.1 billion in Q2 last year -- on account of net sales in both the debt and equity markets.

"Net receipts on account of non-resident deposits increased to $3.3 billion in Q2 of 2018-19 from $0.7 billion a year ago," the central said.

The RBI added that in Q2 2018-19, there was an depletion of $1.9 billion in the foreign exchange reserves (on BoP basis) as against an accretion of US$ 9.5 billion in Q2 of 2017-18.

"The current account deficit for Q2 FY2019 came in at the lower end of our forecast range of $19-21 billion, benefiting from substantial remittances. The widening in the current account deficit in Q2 FY2019, from the modest level in Q2 FY2018, was led by higher and gold imports," said

"While the subsequent correction in has eased concerns regarding the size of the import bill in H2 FY19, it may result in a moderation in remittances. On balance, ICRA forecasts India's current account deficit at $68-73 billion or 2.6 per cent of GDP for FY2019."

--IANS

rv/nir

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

First Published: Fri, December 07 2018. 22:20 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU