India’s Q3FY22 current account deficit at $23 bn

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India’s Q3FY22 current account widened to $23 billion, official data showed on Friday.

A wider trade deficit on the back of expensive commodities negatively impacted the current account. The current account was in a deficit of $9.9 billion in Q2FY22.

On a YoY basis, the country’s Balance of Payments was in a deficit of $2.2 billion in Q3FY21.

“The widening of CAD in Q3:2021-22 was mainly on account of higher trade deficit,” the RBI said in a statement.

“Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of robust performance of net exports of computer and business services.”

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $23.4 billion, an increase of 13.1 per cent from their level a year ago.”Net outgo from the primary income account, mainly reflecting net overseas investment income payments, increased sequentially as well as on a y-o-y basis.”

In the financial account, net foreign direct investment recorded an inflow of $5.1 billion, lower than $17.4 billion a year ago. “Portfolio investment recorded net outflow of $5.8 billion as against an inflow of $21.2 billion in Q3:2020-21.”

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