India's July-September current account deficit more than doubles to $7.2 billion

New Delhi: India`s current account deficit (CAD) widened to 1.2 percent of GDP or USD 7.2 billion in July-September, from 0.6 percent of GDP or USD 3.4 billion reported in the same period a year ago, Reserve Bank of India (RBI) data showed on Wednesday.

India's CAD more than doubles to $7.2 bn in Q2: RBI data

However, the July-September CAD narrowed sharply from USD 15 billion or 2.5 percent of GDP reported in the preceding quarter.

Meanwhile, the trade deficit widened to USD 32.8 billion in the previous quarter from USD 25.6 billion a year ago.

"The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit brought about by a larger increase in merchandise imports relative to exports," the RBI said in the release.

Going ahead the current account deficit is expected to widen and end the fiscal year ending in March at 1.7-2.0 percent of GDP, analysts estimated, as oil and other global commodity prices continue to gain, while exports remain stable.

Despite a wider current account deficit, India`s balance of payments posted a surplus of USD 9.5 billion in July-September compared with USD 8.5 billion a year ago, helped by a stronger capital account.

The capital account surplus, which includes foreign direct investment and portfolio inflows, was at $6.9 billion in the September quarter compared with $4.3 billion a year ago.

With Agency Inputs