Mumbai: A steep decline of 57.2 per cent in gold imports, which amounted to $7.0 billion contributed significantly to the sharp narrowing of the current account deficit to $7.8 billion (1.7 per cent of GDP) in Q1 of 2014-15 from $21.8 billion (4.8 per cent of GDP) in Q1 of 2013-14. It was however higher than $1.2 billion (0.2 per cent of GDP) in Q4 of 2013-14. Gold imports in Q1 of 2013-14 were $16.5 billion.
The RBI which released the preliminary data on India’s BoP for Q1, i.e., April-June, 2014-15, on Monday said the lower CAD was primarily on account of a contraction in the trade deficit contributed by a rise in exports and a decline in imports. On a BoP basis, merchandise exports at $81.7 billion increased by 10.6 per cent in Q1 of 2014-15 as against a decline of 1.5 per cent in Q1 of 2013-14. But merchandise imports at $116.4 billion moderated by 6.5 per cent in Q1 of 2014-15 as against an increase of 4.7 per cent in Q1 of 2013-14. Non-gold imports recorded a rise of 1.3 per cent as against decline of 0.6 per cent reflecting some revival in economic activity.
