The country’s current account deficit (CAD) widened to $7.9 billion in the Oct.-Dec. quarter of the current financial year, which was 1.4% of GDP as compared with $3.4 billion, or 0.6%, recorded in the preceding quarter, Reserve Bank of India data showed.
CAD was $7.1 billion in the third quarter of the fiscal 2015-16. RBI said the CAD widened primarily on account of a decline in net invisibles receipts despite a slightly lower trade deficit on a year-on-year basis.
“Net services receipts moderated on a y-o-y basis, primarily owing to the fall in earnings from software, financial services and charges for intellectual property rights. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $15.2 billion, having declined by 3.8% from ... a year ago.”
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