India’s current account deficit, a key indicator of its balance of payments position, widened to 2.8 percent of GDP to $23.9 billion in the first quarter of the current fiscal year, mainly due to a wider trade deficit.
According to the data released by the Reserve Bank on India’s balance of payments during the first quarter (April-June) of 2022-2023, the current account balance in the first quarter showed a deficit of USD 23.9 billion (2.8 percent of GDP). , an increase of USD 13.4 billion (1.5 percent of GDP) in the January-March period of the last fiscal year.
India’s current account surplus was $6.6 billion, equivalent to 0.9 percent of GDP in the first quarter (April-June) of 2021-2022.
The current account deficit in Q1:2022-23 was driven by the increase in the trade deficit of USD 68.6 billion from USD 54.5 billion in Q4:2021-22 and an increase in net spending of investment income,” according to the RBI.
It also said net services revenue rose, both sequentially and year on year (yoy), as a result of rising computer and business services exports.
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