<p class="bodytext">The current account deficit rose to 2% of the GDP at $13.5 billion in the December quarter, up from $8 billion or 1.4% in the year-ago period, on the back of higher trade deficit, shows the Reserve Bank data.</p>.<p class="bodytext">The CAD, which shows the difference between foreign exchange earned and spent, stood at $7.2 billion or 1.1% of gross domestic product (GDP) in the preceding September quarter, according to data released by the central bank on Friday.</p>.<p class="bodytext">"The widening of the CAD on a year-on-year basis is primarily due to a higher trade deficit which rose to $44.1 billion in the reporting quarter due to a larger increase in merchandise imports relative to exports," the central bank stated.</p>.<p class="bodytext">On a cumulative basis, CAD more than doubled to 1.9% of GDP in the April-December 2017 period from 0.7% in the corresponding period of 2016-17 due to wider trade deficit, which increased to $118.9 billion from $82.7 billion.</p>.<p class="bodytext">Net services receipts rose 17.8% during the reporting quarter mainly on the back of a rise in net earnings from software services and travel receipts.</p>.<p class="bodytext">Private transfer receipts, mainly representing remittances amounted to $17.6 billion, an increase of 16% over a year ago.</p>.<p class="bodytext">In the financial account, net foreign direct investment stood at $4.3 billion, almost 55% less than in the year-ago period when it was at $9.7 billion, the apex bank data showed.</p>.<p class="bodytext">However, net portfolio investment inflows were in the green at $5.3 billion in Q3, compare to an outflow of $11.3 billion in the year-ago period, due to net purchases in both the debt and equity markets.</p>.<p class="bodytext">Net receipts on account of non-resident deposits amounted to $3.1 billion in the reporting quarter, against net repayments of $18.5 billion a year ago.</p>.<p class="bodytext">During the three months to December 2017, the forex kitty swelled by $9.4 billion (on balance of payment basis), against a depletion of $1.2 billion in Q3 of FY17.</p>.<p class="bodytext">During this period, forex kitty saw an accretion $30.3 billion to the foreign exchange reserves.</p>.<p class="bodytext">Net FDI inflows during April-December 2017 declined to $23.7 billion from $30.6 billion, while net portfolio inflows stood at $19.8 billion during the period as against a net outflow of $3.2 billion a year ago.</p>
<p class="bodytext">The current account deficit rose to 2% of the GDP at $13.5 billion in the December quarter, up from $8 billion or 1.4% in the year-ago period, on the back of higher trade deficit, shows the Reserve Bank data.</p>.<p class="bodytext">The CAD, which shows the difference between foreign exchange earned and spent, stood at $7.2 billion or 1.1% of gross domestic product (GDP) in the preceding September quarter, according to data released by the central bank on Friday.</p>.<p class="bodytext">"The widening of the CAD on a year-on-year basis is primarily due to a higher trade deficit which rose to $44.1 billion in the reporting quarter due to a larger increase in merchandise imports relative to exports," the central bank stated.</p>.<p class="bodytext">On a cumulative basis, CAD more than doubled to 1.9% of GDP in the April-December 2017 period from 0.7% in the corresponding period of 2016-17 due to wider trade deficit, which increased to $118.9 billion from $82.7 billion.</p>.<p class="bodytext">Net services receipts rose 17.8% during the reporting quarter mainly on the back of a rise in net earnings from software services and travel receipts.</p>.<p class="bodytext">Private transfer receipts, mainly representing remittances amounted to $17.6 billion, an increase of 16% over a year ago.</p>.<p class="bodytext">In the financial account, net foreign direct investment stood at $4.3 billion, almost 55% less than in the year-ago period when it was at $9.7 billion, the apex bank data showed.</p>.<p class="bodytext">However, net portfolio investment inflows were in the green at $5.3 billion in Q3, compare to an outflow of $11.3 billion in the year-ago period, due to net purchases in both the debt and equity markets.</p>.<p class="bodytext">Net receipts on account of non-resident deposits amounted to $3.1 billion in the reporting quarter, against net repayments of $18.5 billion a year ago.</p>.<p class="bodytext">During the three months to December 2017, the forex kitty swelled by $9.4 billion (on balance of payment basis), against a depletion of $1.2 billion in Q3 of FY17.</p>.<p class="bodytext">During this period, forex kitty saw an accretion $30.3 billion to the foreign exchange reserves.</p>.<p class="bodytext">Net FDI inflows during April-December 2017 declined to $23.7 billion from $30.6 billion, while net portfolio inflows stood at $19.8 billion during the period as against a net outflow of $3.2 billion a year ago.</p>