India`s CAD declines sharply to 1% of GDP in Q2FY24: RBI
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The Reserve Bank of India (RBI) in its latest data has showed that India’s current account deficit (CAD) declined sharply to 1 per cent of the GDP or $8.3 billion in the second quarter of this financial year (Q2FY24), mainly due to lower merchandise trade deficit and growth in services exports.
The current account deficit, which represents the difference between the total amount of money sent abroad and money received from overseas across the economy, was 3.8 per cent of GDP or $30.9 billion in the July-September quarter in 2022-23 (Q2FY23). CAD was $9.2 billion or 1.1 per cent of GDP in the first quarter (April-June) of the current financial year 2023-24 (Q1FY24).
During the July-September quarter (Q2), it showed that net outgo on the primary income account, primarily reflecting payments of investment income, increased to $12.2 billion, from $11.8 billion a year ago. Further, it stated services exports grew by 4.2 per cent on a y-o-y basis on the back of rising exports of software, business and travel services. It added net services receipts increased both sequentially and on a y-o-y basis.
