The trade deficit on the trade balance fell to $61 billion in the quarter from $78.3 billion in the same quarter last year. The decline in the country’s oil import bill due to the fall in crude prices during the quarter played a key role in the decline in the trade deficit.
New Delhi: India’s current account deficit narrowed in the July-September quarter of the current financial year due to a lower trade deficit and a rise in services exports, the RBI said on Tuesday. The current account deficit (CAD) stood at $8.3 billion or 1 percent of GDP in the second quarter of 2023-24, compared to $9.2 billion or 1.1 percent of GDP in the previous quarter. In the same quarter a year ago, the CAD was $30.9 billion or 3.8 percent of GDP.
The trade deficit on the trade balance fell to $61 billion in the quarter from $78.3 billion in the same quarter last year. The decline in the country’s oil import bill due to the decline in crude prices during the quarter played a key role in the decline in the trade deficit.
“Services exports grew by 4.2 percent year-on-year thanks to rising exports of software, business and travel services. Net services revenues increased both sequentially and year-on-year,” the RBI said.
Receipts from private remittances, which mainly represent remittances from Indians abroad, stood at $28.1 billion, up 2.6 percent from the level in the corresponding period a year ago. NRI deposits also recorded a net inflow of $3.2 billion during the second quarter of the current fiscal, compared to a net inflow of $2.5 billion in the second quarter of 2022-23.