India's current account balance recorded a deficit of US$ 23.9 billion (2.8 per cent of GDP) in Q1:2022-23, up from US$ 13.4 billion (1.5 per cent of GDP) in Q4:2021-221 and a surplus of US$ 6.6 billion (0.9 per cent of GDP) a year ago [i.e., Q1:2021-22]. Underlying the current account deficit in Q1:2022-23 was the widening of the merchandise trade deficit to US$ 68.6 billion from US$ 54.5 billion in Q4:2021-22 and an increase in net outgo of investment income payments. Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of rising exports of computer and business services. Services exports grew y-o-y by 35.4 per cent, led by broad-based growth in computer, business, transportation, and travel services.
