India’s present account deficit narrowed sequentially within the three months from January to March, primarily on the again of a moderation within the commerce hole and a decrease web outgo of major earnings, the Reserve Financial institution of India stated on Wednesday.
The present account deficit stood at $13.4 billion or 1.5 per cent of GDP within the fourth quarter of fiscal yr 2021-22, in contrast with $22.2 billion or 2.6 per cent of GDP within the previous October-December quarter.
The deficit had stood at $8.1 billion in the identical quarter a yr in the past, the discharge confirmed.
Present account deficit happens when the worth of products and providers imported and different funds exceeds the worth of export of products and providers and different receipts by a rustic in a selected interval.
The commerce deficit widened to $189.5 billion in 2021-22 from $102.2 billion a yr in the past, which resulted in slippage within the quantity which is taken into account a key illustration of a rustic’s exterior power, the RBI stated.
The Steadiness of Funds information recommended that items imports stood at $618.6 billion in 2021-22 as in opposition to $398.5 billion within the year-ago interval, resulting in the widening of the commerce deficit.