Breaking News

You are here » Indian-Commodity  :  Economy  :  India's CAD widens to $13.5 billion in October-December quarter of FY18


India's CAD widens to $13.5 billion in October-December quarter of FY18

Raising concerns over the fiscal condition, the Reserve Bank of India's (RBI) latest data has showed that India's current account deficit (CAD) , which is the difference between foreign exchange spent and earned, widened sharply to $13.5 billion or 2% of Gross Domestic Product (GDP) in the October-December quarter (Q3) of fiscal year 2017-18, from $8.0 billion (1.4% of GDP) in the corresponding quarter of the previous year and $7.2 billion (1.1% of GDP) in the preceding quarter.

The RBI in its release said that the widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit brought about by increase in imports relative to exports. India's trade deficit increased to $118.9 billion in April-December 2017 from $82.7 billion in the same period of 2016. As per the data, on a cumulative basis, the CAD increased to 1.9% of GDP in April-December 2017 from 0.7% in the corresponding period of 2016-17 on the back of a widening of the trade deficit.

The Central Bank said that the capital and financial account surplus rose to $12.6 billion in the December quarter from $7.3 billion a year ago, bolstered by robust foreign portfolio inflows worth $5.3 billion during this period. Private transfer receipts representing remittances by Indians employed overseas, amounted to $17.6 billion, surging by 16.0% from their level a year ago. 

Besides, net invisible receipts were higher in April-December 2017 mainly due to increase in net services earnings and private transfer receipts, while net Foreign Direct Investment (FDI) inflows during April-December 2017 moderated to $23.7 billion from $30.6 billion during the corresponding period of the previous year.

Related News

View all news

FPO model to help achieve goal of doubling farmers' income well before time: Rupala

Expressing optimism over prospects of Indian farmers' income, Minister of State for Agriculture Parshottam Rupala has said that the farmer-producer organisation (FPO) model could help achieve the goal......

Ind-Ra maintains 'stable' outlook on India's infrastructure sector for rest of FY19

The India Ratings and Research (Ind-Ra) in its latest report has retained its outlook on India's overall transport infrastructure sector including toll roads, annuity roads, hybrid annuity model (HAM)......

India creates over 9.5 lakh new jobs in July 2018: EPFO

In a positive surprise, the Retirement fund body, Employment Provident Fund Organisation (EPFO) in its latest 'Net Payroll Data' report has showed that India created 9.51 lakh new jobs in the month of......

Top News

View all news

ABB India undertakes an ambitious project to create a high density DFC

ABB India has undertaking an ambitious project to create a high density Dedicated Freight Corridor (DFC). The DFC will run between the four cities known as the Golden Quadrilateral - Delhi, Mumbai, Chennai......

NHPC to develop 40 MW solar plant in Odisha: Report

Hydropower generation company NHPC is reportedly planning to develop 40 MW solar plant in Odisha with an investment of about Rs 196 crore. The solar power project will come up on about 180 acres of land......

Tijaria Polypipes bags order worth Rs 35.30 crore

Tijaria Polypipes has received a single order of Rs 35.30 crore for supply of HDPE & PLB Ducts from Tata Projects. The same has to be executed within a period of 3 months. The company takes great......