Current Account Deficit Narrows to 0.9% of GDP in July-Sept on Lower Trade Deficit, Says 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.