``India's current account deficit (CAD) swelled to USD 22.4 billion (5.4% of GDP) in Q2FY13 from USD 16.6 billion (3.9% of GDP) in Q1FY13 as merchandise exports growth fell more sharply than imports in Q2FY13. A high import bill on account of gold and oil import and falling exports due to global slowdown has lately kept India's CAD at consistently high levels. Within invisibles, however, all major services posted a y-o-y increase in Q2FY13. Despite a surge in the foreign direct investment (FDI) and portfolio investment under the financial account, the foreign exchange reserves (excluding the valuation effect) declined by USD 0.2 billion in Q2FY13 due to the high CAD.``

``Going forward, although we expect some recovery in export growth due to improvement in global conditions, India's current account is likely to remain under pressure due to the composition of its import basket which is largely dictated by its energy needs as well as a whole range of capital goods and manufactured intermediates/components,`` said CRISIL Research, in a report.

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