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Current account surplus moderates
Why is it in news?
- As per balance of payment data released by the RBI, India’s current account surplus moderated to $15.5 billion (2.4% of GDP) in the second quarter.
- The country had recorded a deficit of $7.6 billion for the quarter last year.
Details:
- The current account surplus was $19.2-billion (3.8% of GDP) in the April-June quarter.
- The narrowing of the current account surplus was due to a rise in the merchandise trade deficit to $14.8 billion from 10.8 billion in Q1.
- Net services receipts increased on a year-on-year basis, primarily on the back of higher net earnings from computer services.
- Private transfer receipts, mainly representing remittances by Indians employed overseas, declined from a year earlier but sequentially improved 12% to $20.4 billion.