Mumbai: Slowing growth in exports and increase in imports due to the sharp rise in gold imports pushed up India’s current account deficit (CAD) to $10.1 billion (2.1 per cent of GDP) in Q2 of 2014-15 (July-September) from $7.8 billion (1.7 per cent of GDP) in the preceding quarter and $5.2 billion (1.2 per cent of GDP) in Q2 of 2013-14.
On a balance of payment (BOP) position, merchandise export (ex-cluding services expo-rts) growth decelerated to 4.9 per cent in the second quarter of 2014-15 from 11.9 per cent in Q2 of 2013-14, while imports increased by 8.1 per cent in Q2 of 2014-15 as against a decline of 4.8 per cent in Q2 of 2013-14, largely due to a sharp rise in gold imports.
The net accretion of $6.9 billion to India’s foreign exchange reserves in Q2 of 2014-15 as against a drawdown of $10.4 billion in Q2 of 2013-14.
Inflows due to a pick-up in exports of telecommunication, computer and information services improved by 3.4 per cent in Q2 of 2014-15 from their level a year ago, while the outflows on account of primary income (profit, dividend and interest) amounting to $6.9 billion in Q2 of 2014-15 was higher than the corresponding quarter of 2013-14 ($6.3 billion) as well as the preceding quarter ($6.7 billion).
In Q2 of 2014-15, gross private transfer receipts at $17.4 billion were marginally higher while FDI inflows were flat but portfolio investment recorded inflows of $9.8 billion as against an outflow of $ 6.6 billion in Q2 of 2013-14.
NRIs made lower deposits at $4.1 billion in the July-September quarter compared to the $8.2 billion in the same quarter last year.
There was an outflow of $4.6 billion in the same period owing to higher repayments of overseas borrowings by deposit taking corporations (commercial banks) and a build-up of their overseas made lower deposits currency assets.
Even external commercial borrowings at $1.4 billion was a shade higher than $1.3 billion in the previous year.
