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Our special correspondent report:
CAD narrows to 1.2% of GDP
The Current Account Deficit (CAD) of the country has narrowed down sharply to $5.2 billion, or 1.2 per cent of the Gross Domestic Product (GDP), for the second quarter — July to September — in the current financial year.
This was much lower than 5 per cent of the GDP ($21 billion) recorded in the corresponding period of the last financial year and 4.9 per cent of the GDP in the first quarter of the current fiscal.
“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,” said the Reserve Bank of India on Monday.
On a Balance of Payments (BoP) basis, merchandise exports increased by 11.9 per cent to $81.2 billion in the second quarter of 2013-14 “on the back of significant growth, especially in the exports of textile and textile products, leather and leather products and chemicals,” the RBI added.
On the other hand, merchandise imports, at $114.5 billion, recorded a decline of 4.8 per cent in the second quarter of the current financial year as compared to a decline of 3 per cent in the second quarter of 2012-13. This was “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.”
CAD to remain within limit: Chidambaram - The Hindu
CAD narrows to 1.2% of GDP
The Current Account Deficit (CAD) of the country has narrowed down sharply to $5.2 billion, or 1.2 per cent of the Gross Domestic Product (GDP), for the second quarter — July to September — in the current financial year.
This was much lower than 5 per cent of the GDP ($21 billion) recorded in the corresponding period of the last financial year and 4.9 per cent of the GDP in the first quarter of the current fiscal.
“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,” said the Reserve Bank of India on Monday.
On a Balance of Payments (BoP) basis, merchandise exports increased by 11.9 per cent to $81.2 billion in the second quarter of 2013-14 “on the back of significant growth, especially in the exports of textile and textile products, leather and leather products and chemicals,” the RBI added.
On the other hand, merchandise imports, at $114.5 billion, recorded a decline of 4.8 per cent in the second quarter of the current financial year as compared to a decline of 3 per cent in the second quarter of 2012-13. This was “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.”
CAD to remain within limit: Chidambaram - The Hindu
