India’s current account deficit narrowed to 1.3 billion dollars or 0.2 percent of GDP in the January-March quarter of FY23. According to the data released by the Reserve Bank today, the decline was mainly due to moderation in the trade deficit and a robust increase in services exports. However, for fiscal 2022-23, the current account balance recorded a deficit of 2 percent of GDP compared to a deficit of 1.2 percent in 2021-22 as the trade deficit widened to 265.3 billion dollars from 189.5 billion dollars a year ago.
RBI data has shown that net services receipts increased, both sequentially and on a year-on-year basis, on the back of a rise in net earnings from computer services.
The Balance of Payment (BoP) figures for FY23 reveal that net FDI inflows stood at 28 billion dollars, lower than 38.6 billion dollars in 2021-22. Net FPI recorded an outflow of 5.2 billion dollars in 2022-23 as compared with an outflow of 16.8 billion dollars a year ago. RBI data has further revealed that foreign exchange reserves were depleted by 9.1 billion dollars in the last fiscal.
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