India's current account deficit widens, but balance of payments in surplus

[MUMBAI] India's current account deficit widened to US$10.1 billion, or 2.1 per cent of gross domestic product, in the July-September quarter, higher than both the previous quarter and a year earlier, the Reserve Bank of India said on Monday.

India's current account deficit had reached US$5.2 billion, or 1.2 per cent of GDP a year earlier, the RBI said. In the previous quarter, the deficit had reached US$7.8 billion, or 1.7 per cent of GDP.

But the balance of payment stood at a surplus of US$6.9 billion during July-September, a fourth consecutive quarter of surplus, although that was narrower than the US$11.2 billion surplus in the previous quarter.

The trade deficit in the July-September period rose to US$38.6 billion from US$34.6 billion a quarter ago.

REUTERS