India's current account deficit widens to 2.8% of GDP in Q1 FY23: RBI

The current account surplus stood at $6.6 billion— 0.9 per cent of the GDP in the first quarter of the last fiscal.

''Underlying the current account deficit in Q1:2022-23 was the widening of the merchandise trade deficit to $68.6 billion from $54.5 billion in Q4:2021-22 and an increase in net outgo of investment income payments,'' the RBI said.

Net services receipts rose, both sequentially and on a year-on-year basis, it said.

At the end of June, India’s external debt was $617.1 billion—a decrease of $2.5 billion over its level at the end of March this year. The external debt to GDP ratio declined to 19.4 per cent at the end of June from 19.9 per cent at the end of March.

At the end of June, long-term debt was $487.3 billion, recording a fall of $10.6 billion over its level at the end of March.

Loans remained the largest component of external debt, with a share of 31.1 per cent, followed by currency and deposits (22.3 per cent), trade credit and advances (20.6 per cent) and debt securities (18.0 per cent), RBI added.

ALCHEMPro News Desk (DS)