CAD widens to 2.9 pc of GDP in Q2

The Hitavada - - BUSINESS -

IN­DIA’S cur­rent ac­count deficit (CAD) widened to 2.9 per cent of the GDP in the sec­ond quar­ter of the fis­cal com­pared to 1.1 per cent in the year-ago pe­riod, mainly due to a large trade deficit, the RBI said on Fri­day.

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

“In­dia's cur­rent ac­count deficit (CAD) at US$ 19.1 bil­lion (2.9 per cent of GDP) in Q2 of 2018-19 in­creased from US$ 6.9 bil­lion (1.1 per cent of GDP) in Q2 of 201718 and US$ 15.9 bil­lion (2.4 per cent of GDP) in the pre­ced­ing quar­ter,” the RBI said. The CAD has in­creased to 2.7 per cent of GDP in first half of 2018-19 from 1.8 per cent in the cor­re­spond­ing pe­riod of 2017-18 on the back of widen­ing of the trade deficit.

As per the cen­tral bank, the widen­ing of the CAD on a yearon-year ba­sis was pri­mar­ily on ac­count of a higher trade deficit at USD 50 bil­lion as com­pared to USD 32.5 bil­lion a year ago.

RBI's pre­lim­i­nary data on In­dia's bal­ance of pay­ments (BoP) for July-Septem­ber 2018-19 fur­ther re­vealed that net ser­vices re­ceipts in­creased by 10.2 per cent on a Y-o-Y ba­sis.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.