India's Q2 Current Account Deficit Narrows To $12.3 Billion
The moderation can be attributed to lower merchandise trade deficit and higher services receipts.
India's current account deficit narrowed to $12.3 billion or 1.3% of GDP in the second quarter of the current fiscal from $20.8 billion or 2.2% of GDP in the corresponding period last year, according to Reserve Bank of India data released on Monday.
The moderation can be attributed to lower merchandise trade deficit and higher services receipts.
Merchandise trade deficit stood at $87.4 billion in the July-September period, lower than $88.5 billion last year.
Net services receipts increased to $50.9 billion from $44.5 billion a year ago. Services exports have risen on a year-on-year basis in major categories such as computer services and other business services.
The July-September net foreign direct investment (FDI) inflow was $2.9 billion, compared to $2.8 billion outflow last year. Foreign portfolio investment (FPI) recorded a net outflow of $5.7 billion, against a net inflow of $19.9 billion a year ago.
