India’s current account deficit rises to $15.8 bn in Q1 FY19
11 Sep 2018
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India’s current account deficit (CAD) stood at $15.8 billion (or 2.4 per cent of GDP) in Q1 of 2018-19 compared with $15.0 billion (2.5 per cent of GDP) in Q1 of 2017-18, preliminary data on India’s balance of payments (BoP) for the first quarter (April-June 2018-19) showed.
The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit at $45.7 billion compared with $41.9 billion a year ago, says an official release.
Net services receipts increased by 2.1 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 $18.8 billion, increasing by 16.9 per cent from their level a year ago.
In the financial account, net foreign direct investment at $9.7 billion in Q1 of 2018-19 was higher than $7.1 billion in Q1 of 2017-18.
Portfolio investment recorded net outflow of $8.1 billion in Q1 of 2018-19 against an inflow of $12.5 billion in Q1 last year – on account of net sales in both the debt and equity markets.
Net receipts on account of non-resident deposits amounted to $3.5 billion in Q1 of 2018-19 compared with $1.2 billion a year ago.
In Q1 of 2018-19, there was a depletion of $11.3 billion in the foreign exchange reserves (on BoP basis) against an accretion of $11.4 billion in Q1 of 2017-18.
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