In a research note, the bank said it has revised downward its forecast on India's current account deficit to USD 45 billion, or 2.5 percent of the country's gross domestic product from USD 71.8 billion, four percent of the GDP, pegged in its earlier report.
India's trade deficit fell to USD 6.7 billion in September, much lower than our estimate of USD 10.5 billion, the StanChart bank said. This was the best monthly print in the last 30 months.
With softer trade deficit numbers for the last four months, the second quarter trade deficit figure dropped to USD 30 billion from USD 50.5 billion in the first quarter of the current financial year.
"This improvement gives us increased confidence in our view that India's current account current account deficit problem has been overblown," the bank said.
--IANS (Posted on 10-10-2013)