“India’s current account balance recorded a deficit of USD 36.4 billion (4.4 per cent of GDP) in Q2:2022-23, up from USD 18.2 billion (2.2 per cent of GDP) in Q1:2022-23 and a deficit of US$ 9.7 billion (1.3 per cent of GDP) a year ago [i.e., Q2:2021-22],” the RBI said.
Underlying the current account deficit in July-September 2022-23 was the widening of the merchandise trade deficit to USD 83.5 billion from USD 63 billion in first quarter of 2022-23 and an increase in net outgo under investment income.
Services exports reported a growth of 30.2 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 yearly basis.
On the net outgo front from the primary income account, mainly reflecting payments of investment income, increased to US$ 12.0 billion from US$ 9.8 billion a year ago.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 27.4 billion, an increase of 29.7 per cent from their level a year ago.
In the financial account, net foreign direct investment decreased to US$ 6.4 billion from US$ 8.7 billion a year ago.
Net foreign portfolio investment recorded inflows of US$ 6.5 billion, up from US$ 3.9 billion during Q2:2021-22.
Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in Q2:2022-23 as against an inflow of US$ 4.3 billion a year ago.
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