India reports CAD of 1.2% of GDP in FY22 on widening trade deficit: RBI

India posted a current account deficit of 1.2 percent of GDP in 2021-22 versus a surplus of 0.9 percent in FY2020-21 on a larger trade deficit, the Reserve Bank said on Wednesday.

For the January-March 2022 quarter, CAD narrowed to $13.4 billion, or 1.5 percent of GDP, on a sequential basis from $22.2 billion, or 2.6 percent of GDP, in the December 2021 quarter.

A current account deficit occurs when the value of imported goods and services and other payments exceeds the value of a country’s exports of goods and services and other receipts in a given period.

The trade deficit widened to $189.5 billion in FY22 from $102.2 billion a year ago, prompting a decline in the number believed to be key to a country’s external strength, the RBI said .

Balance of payments data suggests that imports of goods were US$618.6 billion in FY22, up from US$398.5 billion in the same period last year, leading to a widening of the trade deficit.

(Only the headline and image of this report may have been edited by Business Standard contributors; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has endeavored to provide timely information and commentary on developments that are of interest to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback to improve what we offer has only strengthened our resolve and commitment to these ideals. Even during these trying times resulting from Covid-19, we remain committed to keeping you informed and informed with credible news, authoritative views and incisive commentary on timely and relevant issues.
However, we have a request.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to bring you higher quality content. Our subscription model has had an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are dedicated to.

Support quality journalism and Subscribe to Business Standard.

digital editor

Leave a Reply

Your email address will not be published.