CAD widens to $19 bn in Q2

Business Standard - - FRONT PAGE - PRESS TRUST OF IN­DIA

In­dia’ s cur­rent ac­count deficit( CAD) wide ned to 2.9 per­cent of gross do­mes­tic prod­uct in the sec­ond quar­ter of 2018-19, as against 1.1 per­cent in the year-ago pe­riod, mainly due to a large trade deficit, the Re­serve Bank of In­dia said on Fri­day.

The CAD, or the dif­fer­ence be­tween the out­flow and in flow of for­eign ex­change in the coun­try’ s cur­rent ac­count, was $19.1 bil­lion dur­ing the quar­ter ended Septem­ber 30,2018. It in­creased from $6.9 bil­lion, or 1.1 per­cent of GDP, in the sec­ond quar­ter of 2017-18. The CAD stood at $15.9 bil­lion (2.4 per­cent of GDP) in the April-June quar­ter.

“In­dia’ s CAD at $19.1 bil­lion (2.9 per­cent of GDP) in Q2 of 201819 in­creased from $6.9 bil­lion (1.1 per­cent of GDP) in Q2 of 2017-18 and $15.9 bil­lion (2.4 per­cent of GDP) in the pre­ced­ing quar­ter ,” the RBI said. The CAD has in­creased to 2.7 per­cent of GDP in the first half of 2018-19 from 1.8 per­cent in the cor­re­spond­ing pe­riod of 2017-18. Ac­cord­ing to the RBI, the widen­ing of the CA Do na year-on-year ba­sis was on ac­count of a higher trade deficit at $50 bil­lion as com­pared to $32.5 bil­lion a year ago.

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