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India's current account deficit, a key indicator of the balance of payment position, widened to 2.8 per cent of GDP at $23.9 billion in the first quarter of the current financial year (Q1FY23), mainly on account of a higher trade deficit.

As per the data released by the Reserve Bank on India's (RBI) Balance of Payments during the First Quarter (April-June) of 2022-23, the current account balance recorded a deficit of $23.9 billion (2.8 per cent of GDP) in the first quarter, up from $ 13.4 billion (1.5 per cent of GDP) in January-March period of the last fiscal.

Data also stated that India's current account surplus stood at $6.6 billion, equivalent to 0.9 per cent of GDP in the first quarter (April-June) of 2021-22. Underlying the current account deficit in Q1FY23 was the widening of the merchandise trade deficit to $68.6 billion from $54.5 billion in Q4FY22 and an increase in net outgo of investment income payments. It also said net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of rising exports of computer and business services.