India's current account deficit (CAD) at USD 7.9 billion (1.4 per cent of GDP) in Q3 of 2016-17 was higher than USD 7.1 billion (1.4 per cent of GDP) in Q3 of 2015-16 and USD 3.4 billion (0.6 per cent of GDP) in the preceding quarter.

Despite a slightly lower trade deficit on a year-on-year (y-o-y) basis, the CAD widened primarily on account of a decline in net invisibles receipts.

Net services receipts moderated on a y-o-y basis, primarily owing to the fall in earnings from software, financial services and charges for intellectual property rights.

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 15.2 billion, having declined by 3.8 per cent from their level a year ago.

In the financial account, net foreign direct investment at USD 9.8 billion in Q3 of 2016-17 was marginally lower than its level a year ago.

There has been net outflow of portfolio investment to the tune of USD 11.3 billion as against net inflow of USD 0.6 billion in Q3 of last year; portfolio outflows occurred in both equity and debt segments.

Reflecting the redemption of FCNR (B) deposits, non-resident Indian (NRI) deposits declined by USD 18.5 billion in Q3 of 2016-17 as against an inflow of USD 1.6 billion a year ago.

In Q3 of 2016-17, foreign exchange reserves (on BoP basis) declined by USD 1.2 billion as against an increase of USD 4.1 billion in Q3 of last year