India's current account deficit rises 2.8% to USD 23.9 billion in Q1of FY23

India's current account deficit, a key indicator of the balance of payment position, rose 2.8 per cent to USD 23.9 billion in the first quarter of the current financial year, according to Reserve Bank of India (RBI) data published on Thursday. 

The rise was mainly on the account of a high trade deficit, which was USD 68.6 billion compared to USD 54.5 billion in the previous quarter (Q4 of 2021-22). 

The RBI said the country's current account balance recorded a deficit of USD 23.9 billion (2.8 per cent of GDP) in Q1, up from USD 13.4 billion (1.5 per cent of GDP) in Q4 of last financial year and a surplus of USD 6.6 billion (0.9 per cent of GDP) a year ago (Q1 of 2021-22).

According to the RBI data, net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of rising exports of computer and business services. Also, services exports grew y-o-y by 35.4 per cent, led by broad-based growth in computer, business, transportation, and travel services.

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 25.6 billion, an increase of 22.6 per cent from their level a year ago. Net outgo on the income account, primarily reflecting payments of investment income, increased to USD 9.3 billion from USD 7.5 billion a year ago. In the financial account, net foreign direct investment increased to USD 13.6 billion from USD 11.6 billion a year ago, the data showed.