India’s current account deficit jumps 7-fold in April-June quarter

  • IANS
  • Economy News
India’s current account deficit jumps 7-fold in April-June quarter

Mumbai, Sep 28 (IANS) India's current account deficit (CAD) jumped 7-fold to $9.2 billion in the April-June quarter compared to the corresponding figure of $1,3 billion in the preceding quarter, according to Reserve Bank of India (RBI) data released on Thursday."The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit coupled with a lower surplus in net services and decline in private transfer receipts," the RBI said.

"Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services."

Merchandise trade deficit widened to $56.6 billion in the quarter, from $52.6 billion in the preceding quarter, but was less than the year-ago deficit of $63.1 billion.

Private transfer receipts, which are mainly remittances by Indians employed overseas, moderated to $27.1 billion from $28.6 billion.

CAD for April-June quarter of 2023-24 works out to 1.1 per cent of GDP while in January-March it was a mere 0.2 per cent of GDP.

In April-June 2022, the figure stood at $17.9 billion, or 2.1 per cent of GDP.

According to Emkay Global Financial Services lead economist Madhavi Arora, the July-September quarter will see a "substantial widening of CAD" on account of higher oil, higher core imports and further slowing of services exports.

"All of this will imply July-September 2023 CAD/GDP ratio could be more than double of April-June 2023 - ranging from 2.4-2.6 per cent," Arora said.

Aditi Nayar, ICRA (NS: ICRA )'s chief economist, also forecast a widening of the CAD to $19 billion-$21 billion, or 2.3 per cent of GDP, in July-September 2023.

--IANS

pannu/ksk

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  • mm mmx @mm mmx
    Most of  this already factored in ... market will rebound sharply ..
    Like 0
  • Riyaz Ansari @Riyaz Ansari
    negative, put buyers like me will enjoy
    Like 0
  • Ankita Shah @Ankita Shah
    impact of this news will be positive or negetive on market?
    Like 0
    • SATHEESH JOSE @SATHEESH JOSE
      obviously it is a negative news..market will correct in coming days..
      Like 0

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  • Indranil Ganguly @Indranil Ganguly
    modi govt, best economist in the world . why not spend more on G20 summit...tere baap ka Paisa hai Jo loota de
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    • Hakuna Matata @Hakuna Matata
      Haha. Money can be spent anywhere except health because other sectors bring money. What does spending on health brings? Blessings of people won't pay any bills or build trains. So he is right. Lol
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