By Malvika Gurung
Investing.com — Data released by the Reserve Bank of India depicts the country’s external strength, indicated by the health of its current account, to be weakening, as the current account deficit for Q3 FY22 has surged to $23 billion from $9.9 billion in Q2 FY22, and 904.3% on a YoY basis.
The current account deficit for the Oct-Dec 2021 quarter widening to $23 billion can also be represented as 2.7% of the GDP.
In the July-Sept 2021 quarter this deficit was $9.9 billion or 1.3% of the GDP, and in the Oct-Dec 2021 quarter (year-ago period), the deficit stood at $2.2 billion or 0.3% of GDP.
The figure surging massively in Q3 FY22, is a result of higher merchandise imports, rising from $111.8 billion in the previous quarter to $169.4 billion, in conjunction with rising prices, fuelling the import bill.
Furthermore, going by the RBI figures, the current account deficit resulting in Q3 FY22 is the highest in nine years, second to $31.8 billion recorded in Q3 FY13.
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