India Current Account Deficit: India’s current account deficit has decreased during the second quarter July to September of the financial year 2023-24. Due to reduction in merchandise trade deficit and increase in services exports, there has been a reduction in the current account deficit.
Releasing the data of current account deficit, RBI said that in the second quarter of the financial year 2023-24, this deficit has been 8.3 billion dollars, which is 1 percent of the GDP. Earlier in the quarter, this deficit was 9.2 billion dollars, which is 1.1 percent of the GDP. Whereas a year ago, in the second quarter of the financial year 2022-23, the current account deficit was $ 30.9 billion, which was 3.8 percent of the DGP.
While releasing these figures, RBI said that the trade deficit has come down to $ 61 billion in the second quarter of 2023-24, which was $ 78.3 billion in the second quarter of 2022-23. There has been a jump of 4.2 percent in services exports. Trade deficit has reduced especially due to the increase in exports of software exports, business and travel services.
According to data released on India’s balance of payments position during the second quarter of the current financial year, “the current account deficit has declined in the July-September quarter of the current financial year.” The reason for this is the reduction in merchandise trade deficit (difference between merchandise exports and imports). It stood at $61 billion in the second quarter of 2023-24, which was $78.3 billion in the second quarter of 2022-23.
In the financial year 2022-23, the current account deficit had increased to 2 percent of the GDP, whereas in 2021-22, there was a deficit of 1.2 percent in the current account balance. There was a trade deficit of $ 265.3 billion in 2022-23, which was a trade deficit of $ 189.5 billion in 2021-22. According to RBI data, the current account deficit was $67 billion in 2022-23, which was $38.7 billion in 2021-22.
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