Mumbai: Lower crude oil prices, along with higher earnings from invisible trade such as services, aided in narrowing India's current account deficit to $14.3 billion in Q1 of 2019-20.
The Reserve Bank of India's data on India's Balance of Payments (BoP) showed that CAD narrowed from $15.8 billion (2.3 percent of GDP) in Q1 of 2018-19 but was higher than $4.6 billion (0.7 percent of GDP) in the preceding quarter. "The CAD contracted on a year-on-year (y-o-y) basis, primarily on account of higher invisible receipts at $31.9 billion as compared with $29.9 billion a year ago," the RBI said in its statement on developments in India's Q1 BoP.
The foreign currency earned via services, income from financial assets, labour and property and current transfers are accounted under the "invisible receipts".
"Net services receipts increased by 7.3 percent on a y-o-y basis, mainly on the back of a rise in net earnings from travel, financial services, and telecommunications, computer, and information services," the statement said. (IANS)