A steep fall in gold imports saw India’s Current Account Deficit (CAD) narrow sharply
Picture for representational purpose
Mumbai:A steep fall in gold imports saw India’s current account deficit (CAD) narrow sharply to $1.2 billion (0.2 per cent of GDP) in the fourth quarter of 2013-14 from $18.1 billion (3.6 per cent of GDP) in the fourth quarter of 2012-13.
It was also lower than the $4.2 billion (0.9 per cent of GDP) in Q3 of 2013-14. Gold led the decline with imports of the metal down at $5.3 billion, significantly lower than $15.8 billion in Q4 of 2012-13 according to the preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March, 2013 relased by the Reserve Bank of India on Thursday.
The trade deficit also declined because of the fall in imports was sharper than that in exports. On a BoP basis, merchandise exports (that excludes services exports) declined by 1.3 per cent to $83.7 billion in Q4 of 2013-14 as against an increase of 5.9 per cent in Q4 of 2012-13.
Imports at $114.3 billion moderated by 12.3 per cent in Q4 of 2013-14 against a decline of 1.0 per cent in Q4 of 2012-13. Merchandise trade deficit (balance of payment basis) contracted by about 33 per cent to $30.7 billion in Q4 of 2013-14 from $ 45.6 billion in the corresponding quarter a year ago. Export earnings from services improved during Q4 of 2013-14 at $19.6 billion, a growth of 15.6 per cent against a dec-line of 3.9 per cent in Q4 of 2012-13.
Net outflow on account of primary income (profit, dividend and interest) amounting to $6.4 billion in Q4 of 2013-14 was higher than that of $5.2 billion in the corresponding quarter of 2012-13.
The net inflow on account of portfolio investment was $9.3 billion while net FDI flow was lower at $0.9 billion.
( Source : dc correspondent )
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