India's current account deficit (CAD) has risen more than doubled to $ 7.2 billion in the second quarter on a yearly basis. This is 1.2 percent of the gross domestic product (GDP). The main reason for this is the increased import expenditure of oil.   

The Reserve Bank said on Wednesday that, though the current account deficit has decreased in the second quarter compared to the first quarter. In the first quarter, it was 2.5 billion dollars of GDP. The current account deficit increased to $ 14.3 billion in the first quarter, CAD was 3.4 billion dollars or 0.6 percent of GDP in the second quarter of the previous fiscal. In general, cad means the difference between the transactions of foreign exchange in a period.     

The Reserve Bank said, "The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit (USD 32.8 billion) brought about by a larger increase in merchandise imports relative to exports." 

During the September quarter, the RBI said net services receipts increased by 13.1 percent on a yearly 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 US$ 17.4 billion, increasing by 14.7 percent from their level a year ago," the central bank said.  In the financial account, net foreign direct investment at USD 12.4 billion in the second quarter of 2017-18 moderated from its level in the similar period of last fiscal.   

Further, portfolio investment recorded net inflow of USD 2.1 billion, lower than USD 6.1 billion in the second quarter last year on account of net sale in the equity market, the RBI said.

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