The present account deficit in Q3 2022-23 has lowered on the again of decrease merchandise commerce deficit. (Representative picture)
The present account deficit had stood at 3.7 per cent of GDP or $30.9 billion in the earlier quarter, Q2.
India’s present account deficit has narrowed to 2.2 per cent of GDP, or $18.2 billion in Q3, in contrast with 2.7 per cent or $22.2 billion in the year-ago interval, in line with the newest RBI information. The CAD had stood at 3.7 per cent of GDP or $30.9 billion in the earlier quarter, Q2.
“Underlying the decrease present account deficit in Q3:2022-23 was a narrowing of merchandise commerce deficit to USD 72.7 billion from USD 78.3 billion in Q2:2022-23, coupled with sturdy providers and personal switch receipts,” the RBI said.
Services exports reported a growth of 24.5 per cent on a year-on-year (y-o-y) basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and on a year-on-year basis.
In the December quarter, net foreign direct investment decreased to USD 2.1 billion from USD 4.6 billion in the year-ago period.
Net foreign portfolio investment recorded inflows of USD 4.6 billion in the December quarter as against an outflow of USD 5.8 billion in the third quarter of 2021-22.
RBI said net outgo from the primary income account, mainly reflecting investment income payments, increased to USD 12.7 billion from USD 11.5 billion in the year-ago period.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 30.8 billion in the December quarter, an increase of 31.7 per cent from their level a year ago.
Non-resident deposits recorded net inflows of USD 2.6 billion in the third quarter of the current fiscal as compared to net inflows of USD 1.3 billion in the year-ago period.
According to RBI data, India recorded a current account deficit of 2.7 per cent of GDP during April-December 2022 period as compared to a deficit of 1.1 per cent during April-December 2021 period.
(With Agencies)
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