By IANS,
Mumbai : India’s current account deficit declined to $5.2 billion in July-September quarter of the current financial year as compared to $21 billion recorded in the corresponding quarter of last year, on the back of rise in exports and decline in gold imports, government data showed Monday.
As proportion of the country’s gross domestic product (GDP), the current account deficit during the quarter under review is 1.2 percent, sharply down from 5 percent recorded in the corresponding quarter in 2012-13, according to data released by the Reserve Bank of India (RBI).
The current account deficit (CAD) was recorded at 4.9 percent of the country’s GDP in the April-June quarter of the current financial year.
“The lower CAD was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports,” the RBI said.
On a balance of payment basis, merchandise exports increased by 11.9 percent to $81.2 billion in the second quarter of 2013-14 on the back of significant growth especially in the exports of textiles and textile products, leather and leather products and chemicals.
On the other hand, merchandise imports at $114.5 billion recorded a decline of 4.8 percent in the second quarter of the current financial year as compared with a decline of 3 percent in the second quarter of 2012-13 year-on-year, primarily led by a steep decline in gold imports, which amounted to $3.9 billion as compared to $16.4 billion in the first quarter of 2013-14 and $11.1 billion in the second quarter of 2012-13.
As a result,the merchandise trade deficit (BoP basis) contracted to $33.3 billion in the second quarter of 2013-14 from $47.8 billion a year ago.