CAD narrows to 2% of GDP In 1st qtr
Mumbai: Lower crude prices and higher invisible receipts have helped the country narrow the current account deficit to 2% of GDP or at $14.3 billion in the first quarter, down 30 basis points from year-ago, the Reserve Bank said on Monday. In the year-ago period, CAD had printed at 2.3% of GDP or $15.8 billion.
“CAD contracted on an annualised basis primarily due to higher invisible receipts at $31.9 billion compared to $29.9 billion a year ago,” RBI said.
The net foreign direct investment was $13.9 billion in Q1 up from $9.6 billion last year. During the quarter, foreign portfolio investment recorded net inflow of $4.8 billion as against an outflow of $8.1 billion in Q1 of 2018-19, on account of net purchases in both debt and equity markets.