India’s current account deficit narrows to $13.4 billion
Mumbai:
India’s current account deficit narrowed sequentially in the three months from January to March, the Reserve Bank of India said on Wednesday, mainly due to a narrowing of the trade gap and lower net expenditure of primary income.
The current account deficit stood at $13.4 billion or 1.5 per cent of GDP in the fourth quarter of FY 2021-22, compared to $22.2 billion or 2.6 per cent of GDP in the preceding October-December quarter.
The loss in the same quarter a year ago was $8.1 billion, as shown in the release.
A current account deficit occurs when the value of imported goods and services and other payments exceed the value of exports of goods and services and other receipts by a country in a particular period.
The RBI said the trade deficit widened to $189.5 billion in 2021-22 from $102.2 billion a year ago, resulting in a fall in numbers, which are considered a major representation of the country’s external strength.
Balance of payments data suggested goods imports stood at $618.6 billion in 2021-22, up from $398.5 billion in the year-ago period, widening the trade deficit.