India's current account deficit widens to USD 6.2 bn

A country's current account is like a big bank statement that shows how much money it earns from and spends with other countries.

When India sells goods to other countries, that is called exporting, and when it buys goods from them, that is called importing.

In June, India bought far more goods from other countries than it sold to them.

When a country spends more money than it earns in this way, it is called a current account deficit.

India's current account deficit in June was USD 6.2 billion.

A year earlier, India actually had a small surplus, meaning it earned USD 1.2 billion more than it spent.

The main reason for the change was that imports grew much faster than exports.

India still earned a lot from services, like technology work, which helped a little.

These preliminary numbers were released by the Reserve Bank of India, the country's central bank, on Friday, August 14.