Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

India’s CAD widens to $7.2 billion in Q2 from $3.4 billion last year

Author: IANS/Thursday, December 14, 2017/Categories: Economy

India’s CAD widens to $7.2 billion in Q2 from $3.4 billion last year

Mumbai, Dec 13 - An exponential rise in merchandise imports widened India's current account deficit (CAD) to $7.2 billion or 1.2% of the GDP in the second quarter of 2017-18, from $3.4 billion reported in the corresponding period in 2016-17.

However, on a sequential basis, the Q2 CAD narrowed down sharply from $15 billion reported for the preceding quarter, the Reserve Bank of India's (RBI) data on Balance of Payments (BoP) showed on December 13. 

"India's CAD at $7.2 billion (1.2% of GDP) in Q2 of 2017-18 narrowed sharply from $15 billion (2.5% of GDP) in the preceding quarter, but was substantially higher than $3.4 billion (0.6% of GDP) in Q2 of 2016-17," the RBI said.

"The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit ($32.8 billion) brought about by a larger increase in merchandise imports relative to exports."

According to RBI's Q2 BoP data, net services receipts increased by 13.1% on a y-o-y basis mainly on the back of a rise in net earnings from software services and travel receipts.

"Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $17.4 billion, increasing by 14.7% from their level a year ago," the country's central bank said.

"In the financial account, net foreign direct investment at $12.4 billion in Q2 of 2017-18 moderated from its level in Q2 of 2016-17."

As per the data, during the quarter in consideration, there was a significant reduction in portfolio investment inflows at $2.1 billion, primarily "on account of net sale in the equity market" as compared to $6.1 billion in the same quarter a year ago.

"Net receipts on account of non-resident deposits amounted to US$ 0.7 billion in Q2 of 2017-18, lower than US$ 2.1 billion a year ago," the RBI said.

There was an accretion of $9.5 billion to India's foreign exchange reserves, as compared to $8.5 billion in the same quarter last year and $11.4 billion in the preceding quarter.
 

Print Rate this article:
No rating

Number of views (227)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free