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

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

In the first quarter, the deficit stood at 2% of GDP or $14.2 billion.

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

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

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