India’s current account deficit widens in April-June
India’s current account deficit widened marginally in the April-to-June quarter compared with a year earlier, the Reserve Bank of India said. The RBI attributed the wider gap to higher commodity prices and a larger trade deficit during the quarter. The current account records a country’s trade in goods and services and net transfers, and a widening deficit signals rising external pressure on the balance of payments.
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The current account deficit is a standard balance-of-payments concept and its drivers are examinable.
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- Current account deficit widened marginally in Q1 (April-June)
- Drivers: higher commodity prices and a wider trade gap
- Source: Reserve Bank of India
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