India’s current account deficit (CAD) narrowed to $8.2 billion (1.6 percent of GDP) in the September 2015 quarter from $10.9 billion (2.2 percent of GDP) in the corresponding period last year, official data showed. However, the CAD widened from $6.2 billion (1.2 percent of GDP) in the June 2015 quarter.
The annual contraction in CAD was primarily on account of lower trade deficit ($37.4 billion) compared to $39.7 billion in the same quarter of 2014-15, the Reserve Bank of India said in statement.
For the quarter ended September, CAD declined to $14.3 billion (1.4 percent of GDP) from 18.4 billion (1.8 percent of GDP) last year. The decline was due to contraction in the trade deficit and a marginal improvement in net invisibles.
Net services receipts moderated marginally on an annual basis largely due to fall in export receipts in transport, insurance and pension services. Likewise, after a sharp pick up in the first quarter, net foreign direct investment (FDI) moderated in second quarter of 2015-16.
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