New Delhi: Data released by the Reserve Bank of India (RBI) has revealed that the current account deficit (CAD) has surged by 2.8% in the first quarter of this fiscal year. The CAD is at $23.9 billion. It was at $13.4 billion in the last quarter of 2021-22 fiscal year.
RBI informed that the rise of current account deficit from 1.5% of GDP to 2.8% of GDP was primarily due to the widening of trade deficit from $54.5 billion to $68.6 billion dollars. The net outgo of investment income payments also increased from $7.5 billion to $9.3 billion.
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Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period. Trade deficit is the difference between imports and exports of the country.
The services exports grew 35.4% on a year-on-year basis. It was due to the increase in exports of computer, business, transportation and travel services. The net foreign portfolio investment recorded outflows of $14.6 billion dollars. The inflow of foreign portfolio investment was at $0.4 billion. The net foreign direct investment surged to $13.6 billion.
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