India’s current account deficit widens to $23 billion in the third quarter of 2021-22
Business
oi-Love Gaur
Mumbai, March 31:
Today, even though the situation is returning on track as before due to Corona epidemic, but it is not yet emerging from the losses caused by it. In such a situation, the current account deficit of India has increased to the highest level in 9 years. India’s current account deficit (CAD) has reached $23 billion in the third quarter of 2021-22. The figures have been released by the Reserve Bank of India on 31 March.
According to the data released by the RBI, India’s CAD increased to $ 23 billion in the third quarter of 2021-22, from $ 9.9 billion in the previous quarter i.e. July-September 2021. At the same time, in October-December 2020, the current account deficit was $ 2.2 billion. In such a situation, this is the highest current account deficit in 9 years for the October-December quarter. The RBI said in a statement that the CAD in the third quarter of 2021-22 was mainly on account of the large trade deficit.
RBI reported that India’s current account deficit (CAD) widened to $23.0 billion (2.7 percent of GDP) in the third quarter of 2021-22 from $9.9 billion (1.3 percent of GDP) in the second quarter of 2021-22. And a year in the second quarter of 2020-21 was $2.2 billion (0.3 percent of GDP). India reported a current account deficit of 1.2 per cent of GDP in April-December 2021, while a surplus of 1.7 per cent in April-December 2020 due to a sharp increase in the trade deficit.
On the other hand, net foreign direct investment (FDI) stood at $26.5 billion in April-December 2021, down from $41.3 billion in April-December 2020. It is also being told that this has happened due to the imports made by India in the July-September quarter and the increase in crude oil prices. Also, if crude oil prices are not controlled, then it is expected to increase further in the next financial year.
Story first published: Thursday, March 31, 2022, 20:27 [IST]
