CAD widens on higher trade deficit (GS-3) Page-11) India's current account deficit (CAD) in the first quarter of 2018-19 increased by $0.8 billion but as a percentage of India's GDP declined marginally to 2.4% of the GDP as compared with 2.5% of the GDP in the first quarter of 2017-18 as per data released by the Reserve Bank of India (RBI) on Friday. "The CAD stood at $15.8 billion (2.4% of GDP) in Q1 of 2018-19 as compared with $15 billion (2.5% of GDP) in Ql of 2017-18," the RBl said "The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at $45.7 billion as compared with $41.9 billion a year ago," the central bank said in a statement.
EXPORT TRADE DEFICIT MPORT
There could be temporary blips but the fundamentals of the economy are very strong" said Rajesh Mokashi, managing director and CEO, CARE Ratings Ltd."There is no doubt that CAD should be viewed in several quarters. In one quarter it may increase due to some temporary distractions. Oil prices are high which is an external factor.We have huge forex reserves to deal with such issues We should not worry, the country will find its way out," he added As per RBI data, net services receipts increased 21% on a y-o-y basis mainly on the back of a rise in net earnings from software and financial services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.8 billion, increasing by 16.9% from their level a year ago, it said.
* In the financial account, net foreign direct investment at $9.7 billion in Ql of 2018-19 was higher than $7.1 billion in Ql of 2017-18. Portfolio investment recorded net outflow of $8.I billion in Ql of 2018-19 as compared with an inflow of $12.5 billion in QI last year on account of net sales in both the debt and equity markets. Net receipts on account of non-resident deposits amounted to $3.5 billion in Q1 of 2018-19 as compared with $1.2 billion a year ago. In Q1 of 2018-19, there was a depletion of $1 1.3 billion of foreign exchange reserves (on BoP basis) against an accretion of $11.4 billion in Q1 of 2017-18, the RBl said
RBI tweaks norms for note change (GS-3) (Page-3) The RBI on Friday tweaked norms for exchange of mutilated notes following the introduction of 2,000, 200 and other lower denomination currencies. Post demonetisation in November 2016, the Reserve Bank introduced 2200 and 2,000 notes. Besides, it came out with smaller notes of 210, 220, 250, 2100 and 2500. Public can exchange mutilated or defective notes at RBI offices and designated bank branches across the country for either full or half value, depending upon the condition of the currency. Making amendments to the Reserve Bank of India (Note Refund) Rules, 2009, the central bank said this has been done to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series, which are smaller compared to the earlier series These rules have come into force with immediate effect. ** "We further inform that there is a change in the minimum area of the single largest undivided piece of the note required for payment of full value for notes of rupees fifty and above denominations..." the RBl said.
Graduate in Economics. Gold medal in Dissertation, Prepared various documents on Demonetisation and GST, Share-trading and many more