High trade deficit pushes India's Q3 CAD to $16.9 bn

Mumbai, March 29 (IANS) India's current account deficit (CAD) widened to $16.9 billion during the third quarter of 2018-19 from $13.7 billion reported in the corresponding period of 2017-18, the Reserve Bank of India (RBI) data showed on Friday.However, on a sequential basis, the Q3 CAD moderated from a higher level of $19.1 billion reported in the previous July-September quarter of FY19."India's current account deficit at $16.9 billion (2.5 per cent of GDP) in Q3 of 2018-19 increased from $13.7 billion (2.1 per cent of GDP) in Q3 of 2017-18, but moderated from $19.1 billion (2.9 per cent of GDP) in the preceding quarter," the RBI said in its statement on developments in India's Q3 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 $49.5 billion as compared with $44 billion a year ago."According to the RBI, net services receipts increased by 2.8 per cent on a Y-o-Y basis mainly on the back of a rise in net earnings from telecommunications, computer and information services and financial services."Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.7 billion, increasing by 6.3 per cent from their level a year ago," the RBI said."In the financial account, net foreign direct investment at $7.5 billion in Q3 of 2018-19 increased from $4.3 billion in Q3 of 2017-18."
--IANS rv/sn/nir