India’s current account deficit narrowed to 1.3 billion US Dollars or 0.2 percent of GDP in the January-March quarter of FY22-23. According to a press statement released by the Reserve Bank of India, the sequential decline in CAD in Q4 was mainly on account of a moderation in the trade deficit to 52.6 billion US Dollars in Q4 from 71.3 billion US Dollars in Q3, coupled with robust services exports. Current Account Deficit is a key indicator of the balance of payment of a country.
The Net services receipts increased, both sequentially and on a year-on-year basis, on the back of a rise in net earnings from computer services.
Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to 28.6 billion US Dollars, up by 20.8 percent from their level a year ago.
The Net Foreign Direct Investment at 6.4 billion US Dollars in this quarter, was higher than 2.0 billion US Dollars in Q3:2022-23.
The Net foreign portfolio investment recorded an outflow of 1.7 billion US Dollars – driven by the equity segment, as compared with an outflow of 15.2 billion US Dollars during the corresponding period a year ago.
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