India's current account deficit (CAD) at USD 13.5 billion (2.0 per cent of GDP) in Q3 of 2017-18 increased from USD 8.0 billion (1.4 per cent of GDP) in Q3 of 2016 -17 and USD 7.2 billion (1.1 per cent of GDP) in the preceding quarter.

The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit (USD 44.1 billion) brought about by a larger increase in merchandise imports relative to exports.

Net services receipts increased by 17.8 per cent on a y-o-y basis mainly on the back of a rise in net earnings from software services and travel receipts.

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 17.6 billion, increasing by 16.0 per cent from their level a year ago.

In the financial account, net foreign direct investment at USD 4.3 billion in Q3 of 2017-18 was lower than USD 9.7 billion in Q3 of 2016-17.

Portfolio investment recorded net inflow of USD 5.3 billion in Q3 of 2017-18 - as against an outflow of USD 11.3 billion in Q3 last year-on account of net purchases in both the debt and equity markets.

Net receipts on account of non-resident deposits amounted to USD 3.1 billion in Q3 of 2017-18 as against net repayments of USD 18.5 billion a year ago.

In Q3 of 2017-18, there was an accretion of US$ 9.4 billion to the foreign exchange reserves (on BoP basis) as against depletion of USD 1.2 billion in Q3 of 2016-17.

BoP during April-December 2017

On a cumulative basis, the CAD increased to 1.9 per cent of GDP in April-December 2017 from 0.7 per cent in the corresponding period of 2016-17 on the back of a widening of the trade deficit.

India's trade deficit increased to USD 118.9 billion in April-December 2017 from USD 82.7 billion in April-December 2016.

Net invisible receipts were higher in April-December 2017 mainly due to increase in net services earnings and private transfer receipts.

Net FDI inflows during April-December 2017 moderated to USD 23.7 billion from USD 30.6 billion during the corresponding period of the previous year.

Portfolio investment recorded a net inflow of USD 19.8 billion during April-December 2017 as against a net outflow of USD 3.2 billion a year ago.

In April-December 2017, there was an accretion of USD 30.3 billion to the foreign exchange reserves.