India’s current account deficit (CAD) declined to 1% of the GDP or $8.3 billion in Q2 of the Financial Year 2023-24.
CAD declined chiefly because of lower merchandise trade deficit and growth in services exports, as per RBI data.
CAD was 3.8% of GDP or $30.9 billion in the July-September quarter of 2022-23.
In the Q1 of FY24, CAD was $9.2 billion or 1.1% of GDP.
According to the data on Developments in India’s Balance of Payments during the second quarter (July-September) of 2023-24, the merchandise trade deficit declined from $78.3 billion in Q2:2022-23 to $61.0 billion in Q2:2023-24.
RBI said services export increased by 4.2% on a y-o-y basis with the increase in exports of software, business and travel services.
RBI also stated that net services receipts grew both year over year and sequentially.
