A pick up in the remittances has failed to salvage the current account deficit- a major component in India’s external sector balance sheet.India's current account deficit-CAD- excess of imports over exports doubled to 1.2% of GDP or $7.2 billion in the second quarter ending September'17 from 0.6% of GDP or $3.5 billion in the September quarter of 2016 as merchandise imports picked up more than exports, preliminary data released by the Reserve Bank of India indicated.“The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit of $ 32.8 billion on account of larger increase in merchandise imports relative to exports” a release by the Reserve Bank said.The rising crude oil prices in the global markets has caused the oil import bill to rise 15% during the quarter to $23.7 billion from $20.5 billion in the same period. Government officials are however do not see this trend as a cause of cause concern. “Prospects of oil prices increasing dramatically are not very warranted” said Bibek Debroy, chairman of prime minister’s economic advisory council on the sidelines of a seminar in Mumbai last week. “Given all the forecast that I have seen and th elvel that oil prices are expected to reach, I don’t see any reason for concern either in terms of overall macroeconomy or in terms of managing the BoP.”Private transfers largely comprising remittances by Indians employed overseas, amounted to $ 17.4 billion, up 14.7% per cent from $15.2 billion a year ago.Portfolio investment recorded net inflow of $ 2.1 billion in Q2 of 2017-18, lower than $ 6.1 billion in Q2 last year on account of net sale in the equity market RBI said.Net receipts through non-resident deposits amounted to $ 0.7 billion in Q2 of 2017-18, lower than $ 2.1 billion a year ago.Overall balance of payments ended in a higher surplus of $9.5 billion compared to $8.5 billion a year ago.