The current account deficit (CAD) is the net difference between inflows and outflows of foreign currencies.
    
"The increase in CAD was primarily on account of higher trade deficit contributed by both a deceleration in export growth and increase in imports," the RBI said.
    
Merchandise exports growth dipped 4.9 percent in the second quarter, while there was an 8.1 percent surge in imports on higher inbound gold shipments.
    
For the first six months of 2014-15, the current account gap narrowed to 1.9 percent or USD 17.9 billion from 3.1 percent in the same period a year-ago, the RBI data showed.
    
There was a net accretion of USD 6.9 billion to the forex reserves during the reporting quarter as against a drawdown of USD 10.4 billion.
    
Net inflows of NRI deposits at USD 4.1 billion in Q2 were lower than the USD 8.2 billion notched up during the days of rupee fall in the year ago period, the RBI said.
    
External commercial borrowings by enterprises at USD 1.4 billion in were higher than USD 1.3 billion year-on-year.
    
CAD 1.2 percent in the second quarter of the previous fiscal on unconventional moves to arrest the rupee slide. It stood at 1.7 percent for the preceding June quarter this year.
    
On services, the net services improved by 3.4 percent on a pick-up in telecommunications, computer and information services, the RBI said.

Latest News  from Business News Desk