India's current account deficit rises 2.8% to USD 23.9 billion in Q1 of FY23

Mumbai: The Reserve Bank has informed that India’s current account balance recorded a deficit of 23.9 billion dollars in the first quarter, an increase of 13.4 billion from the last quarter. This rise of the Current Account Deficit from 1.5 percent of GDP to 2.8 percent of GDP was primarily due to the widening of trade deficit from 54.5 billion dollars to 68.6 billion dollars. The net outgo of investment income payments also increased from 7.5 billion dollars to 9.3 billion dollars.

As per the data released by the Reserve Bank on India’s Balance of Payments during the First Quarter of 2022-23, the services exports grew 35.4 percent on a year-on-year basis, led by broad-based growth in computer, business, transportation and travel



services.

The net foreign portfolio investment recorded outflows of 14.6 billion dollars as against a net inflow of 0.4 billion dollars during the reported quarter. The net foreign direct investment, however, recorded an annual increase from 11.6 billion dollars to 13.6 billion.

In a statement on India’s external debt at end-June 2022, RBI has said that external debt to GDP ratio declined from 19.9 percent in the preceding quarter to 19.4 percent. India’s external debt was placed at 617.1 billion dollars at end-June 2022. The long-term debt, with original maturity of above one year was placed at 487.3 billions, recording a decrease of 10.6 billions over its level at end-March 2022.