Current account deficit widens to 4.4% of GDP in Q2 due to higher trade deficit: RBI data

India's current account deficit widened to 4.4 per cent of the GDP in the quarter ended September, from 2.2 per cent GDP during the April-June period, due to higher trade gap, as per data released by the Reserve Bank on Thursday ''India's current account balance recorded a deficit of $36.4 billion (4.4 per cent of GDP) in Q2:2022-23, up from $18.2 billion (2.2 per cent of GDP) in Q1:2022-23 and a deficit of $9.7 billion (1.3 per cent of GDP) a year ago [i.e., Q2:2021-22],'' the RBI said.

Underlying the current account deficit in July-September 2022-23 was the widening of the merchandise trade deficit to $83.5 billion from $63 billion in first quarter of 2022-23 and an increase in net outgo under investment income.

Services exports reported a growth of 30.2 per cent on a year-on-year (y-o-y) basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and on a yearly basis.