Country Current account deficit increased to $9.7 billion i.e. 1.1 percent of GDP in the April-June quarter. In the June quarter of the financial year 2023-24, the country's CAD (Current Account Deficit) was $ 8.9 billion or 1 percent of the GDP. The Reserve Bank of India (RBI) released these data related to the current account on Monday. In the last January-March quarter, the current account was in surplus of $4.6 billion i.e. 0.5 percent of GDP. The Reserve Bank has attributed this increase in the current account deficit during the June quarter to the increasing merchandise trade gap.
Merchandise trade gap increased to $65.1 billion as against $56.7 billion.
In the first quarter of the current financial year, the merchandise trade gap was recorded at $ 65.1 billion, which was $ 56.7 billion in the June quarter of last year. RBI said that net services receipts increased to $39.7 billion in the June quarter from $35.1 billion a year ago. Along with this, growth has been seen in computer services, business services, travel services and transport services. However, there was a big decline in net foreign portfolio investment during the June quarter. It was only $900 million compared to $15.7 billion a year ago.
Indians living abroad sent more money than last year
Net inflow under commercial borrowings (ECBs) taken from abroad declined to $ 1.8 billion in the first quarter (April-June) of the financial year 2024-25, which was less than $ 5.6 billion recorded in the April-June quarter a year ago. There has also been a jump in the money sent by Indians living abroad in the June quarter. During this period, money sent from abroad to India increased from $27.1 billion in April-June 2023 to $29.5 billion this year. The Reserve Bank of India said that net foreign direct investment inflows also increased to $ 6.3 billion in the last quarter compared to $ 4.7 billion last year.
With PTI inputs
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