Mumbai: Current Account Viewed in India loss The widening trade deficit led to 1.2 per cent of GDP in 2021-22 against a surplus of 0.9 per cent in FY 2020-21, the Reserve Bank said on Wednesday.
For the January-March 2022 quarter, the CAD stood at $13.4 billion, or 1.5 per cent of GDP, on a sequential basis, as against $22.2 billion or 2.6 per cent of GDP in the December 2021 quarter.
A current account deficit occurs when the value of imported goods and services and other payments exceed the value of exports of goods and services and other receipts by a country in a particular period.
The RBI said the trade deficit widened to $189.5 billion in FY22 from $102.2 billion a year ago, resulting in a fall in the numbers, which are considered a major representation of the country’s external strength.
Balance of payments data suggested goods imports stood at $618.6 billion in FY22, compared to $398.5 billion in the year-ago period, widening the trade deficit.
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