India’s present account deficit has tripled up to $13.7 billion in 3 months up to June this year. This had created a new record as the deficit last year during the same quarter was $4.5 billion.

The data from the Reserve Bank of India shows that the deficit has increased to more than the $13 billion which was reported earlier in March this year.

The cause for the increasing present account deficit has been attributed to trade deficit, which also increased to $34.2 billion in June this year from its $25.6 billion figure from the same time period last year.

Even the deficit in the merchandise segment has increased to more than the $31.5 billion recorded in the January-March quarter.

The present deficit in the account is an alarm-raising one as it is grew close to 10% of the GDP. This is one of the highest across the globe.

According to the economists’ belief, in spite of the rising trade deficit, the strong inflow of capital will most probably keep the currency strong. The Indian rupee has gained nearly 5% in September, in the wake of the increasing inflow of dollars in the equity market.