CAD more than doubles to $7.2 bn: RBI data

Published On: 14, Dec 2017 | Source: business-standard.com

The (CAD) in the second quarter more than doubled to $7.2 billion or 1.2 per cent of gross domestic product (GDP) on annual basis, mainly due to higher

However, in the second quarter narrowed sharply from $15 billion (2.5 per cent of GDP) in the preceding quarter, the Reserve Bank of said on Wednesday. Though, it was substantially higher than the $3.4 billion (0.6 per cent of GDP) in the second quarter of 2016-17.

In general terms, refers to the difference between inflow and outflow of foreign exchange that has a bearing on exchange rate.

“The widening of the on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit ($32.8 billion) brought about by a larger increase in merchandise relative to exports,” the said. On a cumulative basis, the increased to 1.8 per cent of in the first half of 2017-18 from 0.4 per cent in comparable period of last financial year on the back of widening of the trade deficit.

imported 124.6 million tonnes of and petroleum products in April-September for $43.5 billion (Rs 2.8 lakh crore) as against 126.1 MT imported for $37 billion (Rs 2.48 lakh crore).

During the September quarter, the said net services receipts increased by 13.1 per cent on a y-o-y basis mainly on the back of a rise in net earnings from software services and travel receipts.

“Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $17.4 billion, increasing by 14.7 per cent from their level a year ago," the central bank said.

In the financial account, net foreign direct investment at $12.4 billion in Q2FY18 moderated from its level in similar period of last financial year. Further, portfolio investment recorded net inflow of $2.1 billion, lower than $6.1 billion in the second quarter last year on account of net sale in the equity market, the said.

In the quarter ending September, there was an accretion of $9.5 billion to the foreign exchange reserves as compared to $8.5 billion in similar period of 2016-17 and $11.4 billion in the preceding quarter. India's trade deficit increased to $74.8 billion in the first of 2017-18 from $49.4 billion in comparable period of 2016-17. 

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