India’s Current Account Deficit widened to 2.1% of the Gross Domestic Product in 2018-’19 from 1.8% in 2017-’18, due to an increase in the trade deficit, the Reserve Bank of India said on Friday. India’s trade deficit increased to $180.3 billion (Rs 12.4 lakh crore) in 2018-’19 from $160.0 billion (Rs 11.03 lakh crore) in 2017-’18, the bank said.
The Current Account Deficit, which is the net amount of foreign exchange inflows and outflows, widened in 2018-’19 despite narrowing in the January to March quarter. In this quarter, the CAD stood at $4.6 billion (Rs 31,715 crore), compared to $17.7 billion (Rs 1.22 lakh crore) in the October to December quarter and $13 billion (Rs 89,630 crore) in the January to March 2018 period.
The trade deficit for the January to March 2019 quarter stood at $35.2 billion (Rs 2.42 lakh crore) as compared with $41.6 billion (Rs 2.86 lakh crore) in the corresponding period a year ago, the RBI said.
Meanwhile, net Foreign Direct Investment inflows into India were $30.7 billion (Rs 2.11 lakh crore) in 2018-’19, marginally higher than $30.3 billion (Rs 2.08 lakh crore) in 2017-’18, the central bank said. Net FDI remained constant at $6.4 billion (Rs 44,126 crore) in the January to March quarter compared to the corresponding period in 2018.
There was also a depletion of $3.3 billion (Rs 22,752 crore) of foreign exchange reserves during 2018-’19, the bank said.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!