Current Account Deficit Narrows Sharply to 1.7 Per Cent in Q1
New Delhi: India's current account deficit narrowed sharply to 1.7 per cent of GDP in the April-June quarter of the ongoing fiscal year mainly on account of reduction in trade deficit and a steep decline in gold imports.
"The lower CAD (current account deficit) was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports," the RBI said in a statement.
Current account deficit narrowed sharply to $7.8 billion, or 1.7 per cent of GDP, in the first quarter of fiscal year 2014-15 from $21.8 billion (4.8 per cent of GDP) in the year-ago period.
However, it was higher than $1.2 billion (0.2 per cent of GDP) in the fourth (January-March) quarter of the previous fiscal year (2013-14).
The decline in imports was primarily led by a steep 57.2 per cent fall in gold imports, which amounted to $7 billion - significantly lower than $16.5 billion in the April-June quarter of 2013-14, the RBI said.
Trade deficit contracted by about 31.4 per cent to $34.6 billion in the fiscal first quarter from $50.5 billion in Q1, 2013-14.
Exports increased 10.6 per cent to $81.7 billion. Imports moderated by 6.5 per cent to $116.4 billion.
Current account deficit, which is the difference between the inflow and outflow of foreign currency, had touched a record high of $87.8 billion (4.8 per cent) in fiscal year 2012-13 mainly on account of steep increase in gold imports.
It had narrowed to $32.4 billion (1.7 per cent) for the entire fiscal year 2013-14 after government imposed import restrictions on the precious metal
.
"The lower CAD (current account deficit) was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports," the RBI said in a statement.
Current account deficit narrowed sharply to $7.8 billion, or 1.7 per cent of GDP, in the first quarter of fiscal year 2014-15 from $21.8 billion (4.8 per cent of GDP) in the year-ago period.
However, it was higher than $1.2 billion (0.2 per cent of GDP) in the fourth (January-March) quarter of the previous fiscal year (2013-14).
The decline in imports was primarily led by a steep 57.2 per cent fall in gold imports, which amounted to $7 billion - significantly lower than $16.5 billion in the April-June quarter of 2013-14, the RBI said.
Trade deficit contracted by about 31.4 per cent to $34.6 billion in the fiscal first quarter from $50.5 billion in Q1, 2013-14.
Exports increased 10.6 per cent to $81.7 billion. Imports moderated by 6.5 per cent to $116.4 billion.
Current account deficit, which is the difference between the inflow and outflow of foreign currency, had touched a record high of $87.8 billion (4.8 per cent) in fiscal year 2012-13 mainly on account of steep increase in gold imports.
It had narrowed to $32.4 billion (1.7 per cent) for the entire fiscal year 2013-14 after government imposed import restrictions on the precious metal
.
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