Breaking News

You are here » Indian-Commodity  :  Economy  :  India's CAD eases marginally to 2.4% of GDP in Q1FY19: RBI

10-Sep2018

India's CAD eases marginally to 2.4% of GDP in Q1FY19: RBI

The Reserve Bank of India (RBI) in its Developments in India's Balance of Payments (BoP) during the Q1 (April-June) of 2018-19, has stated that the country's current account deficit (CAD) as a percentage of Gross Domestic Product (GDP) eased marginally to 2.4% in Q1FY19 against 2.5% in the same quarter of previous year. However, in value terms, the CAD was higher at $15.8 billion in April-June this year as against $15 billion in the same quarter of 2017-18 mainly due to a higher trade deficit.

The central bank stated that trade deficit stood at $45.7 billion as compared with $41.9 billion a year ago. The Indian currency is declining against the US dollar due to global factors as well as concerns on higher trade deficit on account of sustained high crude oil prices. As per the data, net services receipts rose 2.1% year-on-year mainly on the back of a rise in net earnings from software and financial services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.8 billion, rising by 16.9% from their level a year ago.

The data on BoP also revealed that net foreign direct investment at $9.7 billion in the first quarter of 2018-19 was higher than $7.1 billion in the year-ago period. However, portfolio investment recorded net outflow of $8.1 billion in the first quarter of 2018-19 as compared with an inflow of $12.5 billion in the year-ago period on account of net sales in both the debt and equity markets. Net receipts on account of non-resident deposits amounted to $3.5 billion in April-June, 2018-19, as compared with $1.2 billion a year ago.



Related News

View all news

RBI's board to set up expert committee to examine ECF

The Reserve Bank of India's (RBI) Board meeting concluded on a cordial note. In the high profile meeting, which came amid the differences between the government and the RBI, the board agreed to ease liquidity......

RBI to infuse liquidity worth Rs 8000 crore through purchase of G-secs under OMO

Amid recent liquidity concerns, the Reserve Bank of India (RBI) has decided to infuse Rs 8,000 crore through purchase of the government securities (G-secs) under Open Market Operations (OMO) on November......

Investments through P-notes hit over 9-year low of Rs 66,587 crore in October

The share of foreign portfolio investments (FPI) through participatory notes (P-notes) in domestic capital markets has declined to nine-and-a-half year low of Rs 66,587 crore at the end of October. According......

Top News

View all news

Jumbo Finance gets shareholders' nod to increase borrowing limits up to Rs 30 crore

Jumbo Finance has received an approval to increase Borrowing Limits of the company up-to Rs 30 crore. The shareholders of the company at their meeting held on November 19, 2018, approved the same.Jumbo......

Alembic Pharma gets USFDA's nod for Vardenafil Hydrochloride Orally Disintegrating Tablets

Alembic Pharmaceuticals has received an approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Vardenafil Hydrochloride Orally Disintegrating Tablets,......

SRF expects total Rs 28 crore quantum of damage due to Cyclone GAJA

SRF is expecting a total Rs 28 crore quantum of damage caused, based on the initial assessment. The disruption of operations was due to Cyclone GAJA at the plant of Technical Textiles Business (Viralimalai)......