Current Account Deficit eases marginally to 2.4% of GDP in Q1 FY19, RBI says

The Indian currency is declining against the US dollar due to global factors as well as concerns on higher trade deficit on account of sustained high crude oil prices.

According to the data, net services receipts increased by 2.1 per cent year-on-year mainly on the back of a rise in net earnings from software and financial services.

"Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.8 billion, increasing by 16.9 per cent from their level a year ago," the central bank said.

The data on BoP also revealed that net foreign direct investment at $9.7 billion in the first quarter of 2018-19 was higher than $7.1 billion in the year-ago period.

However, portfolio investment recorded net outflow of $8.1 billion in the first quarter of 2018-19 as compared with an inflow of $12.5 billion in the year-ago period - on account of net sales in both the debt and equity markets, the RBI added.

Net receipts on account of non-resident deposits amounted to $3.5 billion in April-June, 2018-19, as compared with $1.2 billion a year ago.

There was a depletion of $11.3 billion of the foreign exchange reserves (on BoP basis) in the first quarter as against an accretion of $11.4 billion in the year-ago period.