<h1>India's Q2 2012-13 Balance of Payments: Current Account Deficit Widens to 5.4% of GDP Amid Trade Deficit Surge.</h1> India's balance of payments for the second quarter of 2012-13 showed a widening current account deficit (CAD) due to a larger trade deficit, with merchandise exports declining by 12.2% and imports by 4.8% year-on-year. The trade deficit increased to $48.3 billion, while the CAD rose to $22.3 billion, representing 5.4% of GDP. Despite increased net services receipts and financial account inflows, including foreign direct investment, there was a marginal drawdown of reserves. For the first half of 2012-13, the CAD was $38.7 billion, reflecting a slowdown in GDP and rupee depreciation, with lower financial account inflows.