India's first quarter current account deficit rises sharply to $14.3 billion

India`s current account deficit (CAD) rose sharply to $14.3 billion in the first quarter (April-June) of 2017-18 from $0.4 billion reported for the like period of 2016-17, the Reserve Bank of India (RBI) said on Friday.

An exponential increase in merchandise imports during the first quarter (April-June) of 2017-18 pushed India`s current account deficit (CAD) higher to $14.3 billion from $0.4 billion reported for the like period of 2016-17.

According to data released by Reserve Bank of India (RBI) on Friday, Q1 CAD was even higher than the fourth quarter 2016-17 deficit of $3.4 billion.

"India`s CAD at $14.3 billion (2.4 per cent of GDP) in Q1 of 2017-18 increased sharply from $0.4 billion (0.1 per cent of GDP) in Q1 of 2016-17 and $3.4 billion (0.6 per cent of GDP) in Q4 of 2016-17," the RBI said.

"The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit ($41.2 billion) brought about by a larger increase in merchandise imports relative to exports."