Q3 Balance of Payments: Key takeaways

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.