New Delhi, Dec 29 (IANS): India's current account deficit rose sharply to 4.4 per cent of the GDP in the second quarter of the current fiscal (2022-23) from 2.2 per cent in the first quarter.

The current account balance recorded a deficit of $36.4 billion (4.4 per cent of GDP) in the second quarter, up from $18.2 billion (2.2 per cent of GDP) in the first.

Underlying the current account deficit in the second quarter was the widening of the merchandise trade deficit to $83.5 billion from $63 billion in the first quarter of 2022-23.

There was a depletion of foreign exchange reserves to the tune of $30.4 billion in second quarter as against an accretion of $31.2 billion during the corresponding period of last year.

Net FDI inflows also fell to $20 billion in the first half of 2022-23 compared to $20.3 billion recorded in the corresponding period of last year.

These are some of the key details of the data released by RBI on balance of payments for the second quarter of current fiscal on Thursday.

Portfolio investment recorded a net outflow of $8.1 billion in first half of 2022-23 as against an inflow of $4.3 billion a year ago.

Meanwhile, net invisible receipts were higher in first half of 2022-23 on a year-on-year basis on account of higher net receipts of services and private transfers.

Non-resident deposits recorded net inflows of $2.5 billion second quarter of 2022-23 as against net outflows of $0.8 billion in second quarter of 2021-22.

Net foreign portfolio investment recorded inflows of $6.5 billion in second quarter of current fiscal, up from $3.9 billion during second quarter of 2021-22.

Net external commercial borrowings to India recorded an outflow of $0.4 billion in second quarter of current fiscal as against an inflow of $4.3 billion a year ago.