New Delhi: Data released by the Reserve Bank of India (RBI) revealed that the current account deficit of the country improved in the three months from January to March. The apex bank said that the moderation in the trade gap and a lower net outgo of primary income are the main reason for this.
The current account deficit stood at $13.4 billion or 1.5% of GDP in the fourth quarter of fiscal year 2021-22. It was at $22.2 billion or 2.6% of GDP in the preceding October-December quarter. The deficit had stood at $8.1 billion in the same quarter a year ago.
Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period.
As per the data, the trade deficit widened to $189.5 billion in 2021-22 from $102.2 billion a year ago. Goods imports stood at $618.6 billion in 2021-22 as against $398.5 billion in the year-ago period.