My Account
Follow us on:
Powered By
Find & Invest in bonds issued by top corporates, PSU Banks, NBFCs, and much more. Invest as low as 10,000 and earn better returns than FD
Invest Now
Powered By
Unlock Your Trading Potential: Trade like Experts with SEBI registered creators, Learn from Courses & Webinars by India’s Finest Finance Experts.
Invest Now
AMBAREESH BALIGA
Fundamental, Stock Ideas, Multibaggers & Insights
Subscribe
CK NARAYAN
Stock & Index F&O Trading Calls & Market Analysis
Subscribe
SUDARSHAN SUKHANI
Technical Call, Trading Calls & Insights
Subscribe
T GNANASEKAR
Commodity Trading Calls & Market Analysis
Subscribe
MECKLAI FINANCIALS
Currency Derivatives Trading Calls & Insights
Subscribe
SHUBHAM AGARWAL
Options Trading Advice and Market Analysis
Subscribe
MARKET SMITH INDIA
Model portfolios, Investment Ideas, Guru Screens and Much More
Subscribe
TraderSmith
Proprietary system driven Rule Based Trading calls
Subscribe
Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Subscribe
Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas
Explore
STOCK REPORTS BY THOMSON REUTERS
Details stock report and investment recommendation
Subscribe
POWER YOUR TRADE
Technical and Commodity Calls
Subscribe
INVESTMENT WATCH
Set price, volume and news alerts
Subscribe
Check your Credit Score for Free and Get Guaranteed ₹100 Cash Reward!
Check your Credit Score for Free and Get Guaranteed ₹ 100 Cash Reward!
India’s current account deficit (CAD) narrowed to $8.3 billion in the second quarter of 2023-24, according to data released on December 26 by the Reserve Bank of India (RBI).
As per the data, the CAD in July-September amounted to 1.0 percent of India’s GDP.
Also Read: No current account concerns yet despite October trade deficit shocker
“Underlying the lower current account deficit on a year-on-year basis in July-September 2023 was the narrowing of merchandise trade deficit to $61.0 billion from $78.3 billion in July-September 2022,” the RBI said.
The CAD in April-June 2023 was $9.2 billion, or 1.1 percent of GDP. In July-September 2022, the deficit stood at a huge $30.9 billion, or 3.8 percent of GDP.
Details of India’s Balance of Payments (in billions of US dollars) | ||
JUL-SEP 2023 | APR-JUN 2023 | |
Current account deficit | 8.3 | 9.2 |
Goods trade deficit | 61.0 | 56.6 |
Services trade surplus | 40.0 | 35.1 |
Travel | -1.2 | -3.1 |
Computer services | 35.2 | 33.9 |
Professional, consulting services | 11.6 | 11.5 |
Workers’ remittances | 14.6 | 14.5 |
While the merchandise trade deficit was significantly lower compared to the year-ago quarter, it was $4.4 billion higher from April-June. However, the rise in the goods trade deficit was cancelled out by a $4.8 billion quarter-on-quarter increase in the services trade surplus to $40.0 billion.
“Services exports grew by 4.2 percent on a year-on-year basis on the back of rising exports of software, business and travel services,” the RBI noted.
Trade apart, July-September saw workers’ net remittances rise marginally to $14.6 billion from $14.5 billion in the previous quarter. However, on a year-on-year basis, workers’ net remittances were down 10 percent.
Also Read: World Bank says India top of remittances list in 2023 with 23% rise to $125 billion
For the first half of 2023-24, the current account deficit more than halved to $17.5 billion – or 1.0 percent of GDP – from $48.8 billion in April-September 2022, or 2.9 percent of GDP. However, the current account deficit is set to widen sharply in October-December, data for which will be released at the end of March 2024.
“Following the expansion in the merchandise trade deficit in October, we expect the CAD for the ongoing quarter to widen appreciably, to around $18-20 billion. Nevertheless, we now foresee the 2023-24 CAD in a range of 1.5-1.6 of GDP, unless commodity prices chart a sharp rebound,” said Aditi Nayar, chief economist at ratings agency ICRA.
In October, India’s goods imports and the goods trade deficit hit all-time highs of $31.5 billion and $65.0 billion, respectively. However, there was marked moderation in November, with the trade deficit falling to $20.6 billion and imports to $54.5 billion.
For 2022-23 as a whole, India’s current account deficit stood at $67.0 billion or 2.0 percent of GDP.
Check Free Credit Score on Moneycontrol: Easily track your loans, get insights, and enjoy a ₹100 cashback on your first check!
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
You are already a Moneycontrol Pro user.
Access your Detailed Credit Report – absolutely free