A sharp rise in trade deficit due to rise in imports caused the current account deficit to rise by $1.7 billion from $3.7 billion in the corresponding quarter last year, the Balance of Payment Data released by the Reserve Bank showed.
The trade deficit widened to $25.4 billion from $16.5 billion as import payments registered a jump of 41.4 per cent with growth in oil imports after international crude oil prices surged.
On a net basis, the invisibles account recorded a surplus of $20 billion in Q3 as against $12.8 billion in the corresponding quarter last year, mainly led by remittances from overseas Indians and software services.
For the April-December period, the trade deficit widened to $66.5 billion from $50.3 billion a year ago and the current account witnessed a deficit of $16 billion as against $14 billion, the data showed.
The merchandise exports recorded a growth of 34.9 per cent in Q3 of 2007-08 as compared with 20.9 per cent in the same quarter last year, led by engineering goods, petroleum products, gems and jewellery and ores and minerals.
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