CAD widens on higher trade deficit

Rises by $0.8 billion in Q1 of 2018-19
The current account deficit (CAD) in the first quarter of 2018-19 increased by $0.8 billion. However, as a proportion of GDP, it declined marginally to 2.4% as compared with 2.5% in the first quarter of 2017-18 as per data released by the Reserve Bank of India (RBI) on Friday.
“The CAD stood at $15.8 billion (2.4% of GDP) in Q1 of 2018-19 as compared with $15 billion (2.5% of GDP) in Q1 of 2017-18,” the RBI said. “The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at $45.7 billion as compared with $41.9 billion a year ago,” the central bank said in a statement.
As per RBI data, net services receipts increased 2.1% on a year-on-year basis mainly on the back of a rise in net earnings from software and financial services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.8 billion, increasing by 16.9% from their level a year ago, it said. In Q1 of 2018-19, there was a depletion of $11.3 billion of foreign exchange reserves (on BoP basis) against an accretion of $11.4 billion in Q1 of 2017-18, the RBI said.
Source : https://www.thehindu.com/todays-paper/tp-business/cad-widens-on-higher-trade-deficit/article24897745.ece

About ChinmayaIAS Academy - Current Affairs

Check Also

INDIA-INDONESIA COORDINATED PATROL

CONTEXT: Recently, the 35 edition of India-Indonesia Coordinated Patrol (IND-INDO CORPAT) between the Indian Navy …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates