As proportion of the country's gross domestic product (GDP), the current account deficit during the quarter under review is 1.2 percent, sharply down from 5 percent recorded in the corresponding quarter in 2012-13, according to data released by the Reserve Bank of India (RBI).
The current account deficit (CAD) was recorded at 4.9 percent of the country's GDP in the April-June quarter of the current financial year.
"The lower CAD was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports," the RBI said.
On a balance of payment basis, merchandise exports increased by 11.9 percent to $81.2 billion in the second quarter of 2013-14 on the back of significant growth especially in the exports of textiles and textile products, leather and leather products and chemicals.
On the other hand, merchandise imports at $114.5 billion recorded a decline of 4.8 percent in the second quarter of the current financial year as compared with a decline of 3 percent in the second quarter of 2012-13 year-on-year, primarily led by a steep decline in gold imports, which amounted to $3.9 billion as compared to $16.4 billion in the first quarter of 2013-14 and $11.1 billion in the second quarter of 2012-13.
As a result,the merchandise trade deficit (BoP basis) contracted to $33.3 billion in the second quarter of 2013-14 from $47.8 billion a year ago.
--IANS (Posted on 02-12-2013)