CAD narrows to 0.9% of GDP in July-Sept on lower trade deficit: RBI

MUMBAI: The current account
deficit (
CAD) narrowed
to 0.9 per cent
of
GDP or USD 6.3 billion
in the July-September quarter
of the current fiscal from 2.9 per cent or USD 19 billion
in same period last year, according
to the RBI data.

In the first quarter, the
deficit stood at 2 per cent
of
GDP or USD 14.2 billion.

“The contraction
in the
CAD was primarily
on account
of a
lower
trade
deficit at USD 38.1 billion as compared with USD 50 billion a year ago,” RBI said
in a release.

In the first half
of the current fiscal, the
CAD narrowed
to 1.5 per cent
of
GDP from 2.6 per cent
in the same period
in FY2018-19
on the back
of a reduction
in the
trade
deficit.

Trade
deficit shrank
to USD 84.3 billion
in the first half
of FY2019-20 from USD 95.8 billion last year, the RBI said.