India's Q2 current account deficit widens to $19.1 bn
Friday - December 7, 2018 8:28 pm , Category : BUSINESS
Mumbai, Dec 7 (IANS) India's current account deficit (CAD) widened 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 Reserve Bank of India (RBI) data showed on Friday."India's CAD 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 CAD 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 financial services."Private transfer receipts, mainly representing remittances by Indians 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 bank 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.