New Delhi: India’s current account deficit further widened due to increasing merchandise trade deficit and well as lower earnings through invisibles in the Jan-March quarter, central bank data showed.
The current account deficit was at $13 billion in the March-quarter, compared with $12.2 billion in Oct-Dec, the central bank said on Wednesday.
The Oct-Dec current account deficit was revised upwards to $12.2 billion from $12.03 billion that was announced in March.
India’s merchandise trade deficit was $31.5 billion in the March-quarter as against an upwardly revised $31.1 billion in the December-quarter.
The RBI said the balance of payments surplus in Jan-March was $2.1 billion, compared with a surplus of $1.8 billion in the Oct-Dec quarter.
An increase in the capital account surplus in the March quarter over the December quarter helped the overall balance of payment to be positive. In Jan-March, capital account surplus was $15.1 billion compared with $14 billion in the Oct-Dec period.
“The surplus in the capital account increased mainly due to portfolio investment and short-term trade credits.
For the full year of 2009-10, the country’s current account deficit widened to $38.4 billion from $28.7 billion the earlier year.
The balance of payments surplus in 2009-10 was $13.4 billion, compared with a deficit of $20.1 billion in 2008-09.
The capital account surplus was at $51.9 billion in 2009-10 compared with $8.6 billion year ago, the RBI data showed.
The total foreign investment in 2009-10 was sharply up at $52.1 billion from $3.5 billion year ago on the back of robust protfolio investment.
Total portfolio investment in 2009-10 was $32.4 billion compared with an outflow of $14 billion year ago, the RBI said.