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Country's current account deficit plunges 0.2 pc of GDP
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SME Times News Bureau | 11 Jun, 2015
Country's current account deficit (CAD) narrowed sharply to $1.3 billion, or just 0.2
percent of GDP, on the back of a fall in trade deficit in the fourth
quarter ended March, as compared to $8.2 billion in the previous quarter
ended December, it was announced on Wednesday.
The CAD was at a
marginally higher than $1.2 billion in the corresponding period in the
previous year, the Reserve Bank of India said.
"The reduction in
the CAD in Q4 2014-15 was primarily on account of lower trade deficit as
net earnings through services and primary income (profit, dividend and
interest) witnessed a decline in q-o-q (quarter-on-quarter) terms albeit
secondary income recorded a marginal increase of 0.4 percent," RBI
said.
The merchandise trade deficit ($31.7 billion during Q4
2014-15) fell sharply on a quarter-on-quarter basis on account of a
larger decline in imports (13.4 percent) than in exports (10.4
percent).
The balance of payments, at a surplus of $$30.1 billion
during the quarter in question, was more than double the $13.2 billion
surplus in the previous quarter, on the back of a sizeable increase in
net financial flows.
"During Q4 of 2014-15, on a BoP basis, there
was highest ever net accretion of $30.1 billion to India's foreign
exchange reserves in a single quarter; it was more than double the
accretion in the preceding quarter and almost four times of the reserves
accrued in Q4 of 2013-14 signifying record increase in capital inflows
and dip in current account deficit," the RBI said.
The trade
deficit widened marginally in the fourth quarter as exports declined
15.4 percent in the quarter in question over the year-ago period as
compared to a 10.4 percent decline in imports.
Net inflows under
the capital and financial account (excluding change in foreign exchange
reserves) rose to $89.5 billion during 2014-15 from $48.7 billion in the
previous year.
The RBI had in a statement issued during the
second bi-monthly policy review last week estimated the CAD at 1.5
percent for the current fiscal.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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