Current account deficit widens to 2.7 per cent of GDP in Q3
India’s present account deficit (CAD) elevated to $ 23.0 billion (2.7 per cent of GDP) within the third quarter (Q3) of 2021-22 from $ 9.9 billion (1.3 per cent of GDP) in Q2 of 2021-22 and $ 2.2 billion (0.3 per cent of GDP) a yr in the past in Q3 of 2020-21.
The present account deficit was 1.2 per cent of GDP in April-December 2021 as in opposition to a surplus of 1.7 per cent in April-December 2020 on the again of a pointy enhance within the commerce deficit, the RBI stated on Thursday.
The widening of CAD in Q3 of 2021-22 was primarily on account of upper commerce deficit, in keeping with the RBI. Net providers receipts elevated, each sequentially and on a year-on-year (y-o-y) foundation, on the again of sturdy efficiency of internet exports of laptop and enterprise providers, the RBI stated.
Private switch receipts, primarily representing remittances by Indians employed abroad, amounted to $ 23.4 billion, a rise of 13.1 per cent from their degree a yr in the past.
“Net outgo from the primary income account, mainly reflecting net overseas investment income payments, increased sequentially as well as on a y-o-y basis,” the RBI stated. In the monetary account, internet overseas direct funding recorded an influx of $ 5.1 billion, decrease than $ 17.4 billion a yr in the past.
Portfolio funding recorded internet outflow of $ 5.8 billion as in opposition to an influx of $ 21.2 billion in Q3:2020-21. Net exterior business borrowings to India recorded outflow of $ 0.2 billion in Q3:2021-22 as in contrast with $ 1.6 billion a yr in the past, it stated.
Non-resident deposits recorded internet influx of $ 1.3 billion as in contrast with $ 3.0 billion in Q3 of 2020-21. There was an accretion of $ 0.5 billion to the overseas trade reserves (on a BoP foundation) as in contrast with $ 32.5 billion in Q3 of 2020-21.
Net invisible receipts have been greater in April-December 2021, on account of upper internet receipts of providers and personal transfers. Net FDI inflows at $ 26.5 billion in April-December 2021 have been decrease than $ 41.3 billion in April-December 2020. In April-December 2021, there was an accretion of $ 63.5 billion to the overseas trade reserves (on a BoP foundation).
