Mumbai: The current account deficit increased to USD 14.3 billion, or 2.4 per cent of gross domestic product (GDP), in the first quarter of the current fiscal from USD 0.4 billion a year ago, the Reserve Bank said.
On a sequential basis, the current account deficit also widened from USD 3.4 billion or 0.6 per cent of GDP in the fourth quarter of fiscal 2017.
"The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit, which was at USD 41.2 billion brought about by a larger increase in merchandise imports relative to exports," RBI said.
Balance of payments for the April-June quarter stood at USD 11.40 billion from USD 6.969 billion in the year ago period. The net foreign direct investment at USD 7.2 billion in the reporting quarter almost doubled from its level in the same period last year.
Net portfolio investment recorded substantial inflow of USD 12.5 billion in quarter, primarily in the debt segment, as compared to USD 2.1 billion in first quarter of last year.
Net services receipts rose by 15.7 per cent on a y-o-y basis mainly on the back of a rise in net earnings from travel, construction and other business services.
Private transfer receipts, mainly representing remittances by Indians employed overseas, at USD 16.1 billion increased by 5.3 per cent over the corresponding quarter of previous year.
In April-June quarter, there was an accretion of USD 11.4 billion to the foreign exchange reserves as compared to USD 7 billion in the year-ago quarter and USD 7.3 billion in the fourth quarter of fiscal 2017.