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India reports CAD of 1.2% of GDP in FY22 on widening trade deficit: RBI

Current account deficit narrows to $13.4 bn or 1.5% of GDP in March qtr against $22.2 bn or 2.6% of GDP in December qtr, say RBI

Topics
Current Account Deficit | RBI

Press Trust of India  |  Mumbai 

Rupee, rupee vs dollar

India witnessed a of 1.2 per cent of GDP in 2021-22 against a surplus of 0.9 per cent in FY2020-21 due to a wider trade deficit, the Reserve Bank said on Wednesday.

For the January-March 2022 quarter, the CAD narrowed on a sequential basis to USD 13.4 billion or 1.5 per cent of GDP against USD 22.2 billion or 2.6 per cent of GDP in the December 2021 quarter.

occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period.

The trade deficit widened to USD 189.5 billion in FY22 from USD 102.2 billion a year ago, which resulted in slippage in the number which is considered a key representation of a country's external strength, the said.

The Balance of Payments data suggested that goods imports stood at USD 618.6 billion in FY22 as against USD 398.5 billion in the year-ago period, leading to the widening of the trade deficit.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, June 22 2022. 19:15 IST
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