This is an archive article published on March 11, 2015

CAD narrows to 1.6% of GDP in Q3

During the nine months ended December 2014, CAD declined to 1.7 per cent from 2.3 per cent in the same period a year ago.

2 min readBetul/mumbai, MumbaiMar 11, 2015 02:02 AM IST First published on: Mar 11, 2015 at 02:01 AM IST

Notwithstanding a decline in foreign capital flows, India’s current account deficit (CAD) narrowed to 1.6 per cent of GDP ($ 8.2 billion) on a quarter-over-quarter (QoQ) basis during the third quarter of 2014-15 from 2 per cent ($10.1 billion) in the second quarter.

However, it almost doubled from 0.9 per cent in the same period of last year, the Reserve Bank said on Tuesday.

During the nine months ended December 2014, CAD declined to 1.7 per cent from 2.3 per cent in the same period a year ago. With this, the country is likely to meet the 1.3 per cent CAD target set for FY15.

Trade deficit of $39.2 billion in Q3 widened on a QoQ basis due to a larger decline in merchandise exports (7.3 per cent) than in merchandise imports (4.5 per cent); in terms of YoY too, the deficit in Q3 2014-15 widened due to a decline in exports (1.0 per cent).