Q3 Balance of Payments: Key takeaways
India‘s current account deficit (CAD) widened to 6.7 percent as against expected 6.4 percent in the October-December quarter, 2012.
March 28, 2013 / 23:09 IST
Moneycontrol Bureau
- India's current account deficit (CAD) widened to 6.7 percent as against expected 6.4 percent in the October-December quarter, 2012. - High trade deficit led to further expansion of CAD. Trade deficit stood at USD 59.60 billion or 12.3% of GDP in Q3 of FY13. - CAD was at 5.4 percent in July-September quarter. - India's exports rose marginally by 0.50 percent to USD 71.8 billion in October-December quarter, 2012-13. - India's imports rose more than 9% to USD 131.4 billion. However, the growth is lower than 22.3% recorded in the Q3, FY12. - Net capital inflows improved. foreign portfolio investment rose to USD 8.6 dollar compared with USD 1.8 billion in the corresponding quarter of the previous year. - Foreign Direct Investment (FDI) declined to USD 2.5 billion in Q3, FY13 as against USD 5 billion during the same period a year back. - Net inflows increased to USD 70.07 billion during April-December 2012 versus 58.3 billion in Q3, FY12. - Higher net portfolio investment along with loans availed by banks and corporates led to surplus capital inflows. - External Commercial Borrowings (ECBs) surged to USD 3.1 billion as against a net repayment at USD 0.8 billion in Q3, FY12. - Foreign exchange reserve was up by USD 0.8 billion during October-December quarter in FY13. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
