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Current account deficit rose to 4.4% in Q2 from 2.2% in Q1: RBI data
Underlying the current account deficit in the second quarter was the widening of the merchandise trade deficit to $83.5 billion from $63 billion in the first quarter of 2022-23.
New Delhi: India's current account deficit rose sharply to 4.4 percent of the GDP in the second quarter of the current fiscal (2022-23) from 2.2 percent in the first quarter. The current account balance recorded a deficit of $36.4 billion (4.4 percent of GDP) in the second quarter, up from $18.2 billion (2.2 percent of GDP) in the first.
Underlying the current account deficit in the second quarter was the widening of the merchandise trade deficit to $83.5 billion from $63 billion in the first quarter of 2022-23. There was a depletion of foreign exchange reserves to the tune of $30.4 billion in the second quarter as against an accretion of $31.2 billion during the corresponding period of last year. (Also Read: Want health insurance to cover COVID-19? Corona Kavach to Corona Rakshak - check all options)
Net FDI inflows also fell to $20 billion in the first half of 2022-23 compared to $20.3 billion recorded in the corresponding period of last year. These are some of the key details of the data released by RBI on the balance of payments for the second quarter of the current fiscal on Thursday. (Also Read: BUMPER RETURN business idea! Post Office offering scheme to earn upto Rs 80,000/month by just investing Rs 5000 once)
Portfolio investment recorded a net outflow of $8.1 billion in the first half of 2022-23 as against an inflow of $4.3 billion a year ago. Meanwhile, net invisible receipts were higher in the first half of 2022-23 on a year-on-year basis on account of higher net receipts of services and private transfers.
Non-resident deposits recorded net inflows of $2.5 billion second quarter of 2022-23 as against net outflows of $0.8 billion in the second quarter of 2021-22. Net foreign portfolio investment recorded inflows of $6.5 billion in the second quarter of the current fiscal, up from $3.9 billion during the second quarter of 2021-22.
Net external commercial borrowings to India recorded an outflow of $0.4 billion in the second quarter of the current fiscal as against an inflow of $4.3 billion a year ago.