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Current Affairs PDF

Current Account Deficit fell to 1.3% of GDP

By
AC Team 1
-
March 22, 2016

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India’s current account deficit, the excess of imports over exports, fell further to 1.3% of the gross domestic product due to benefits of lower commodity prices.

RBI

Flash points

  • Reserve Bank of India data showed current account deficit (CAD) at $1 billion in the third quarter ending December, lower than $8.7 billion or 1.7% of GDP in the preceding quarter
  • Last year the CAD was at $7.7 billion and at 1.5% of GDP
  • The fall in commodity prices helped lowering of trade deficit to $34 billion from $37.4 billion
  • Net outflow for the third quarter was just about $0.2 billion compared with net outflow of $3.5 billion in the preceding quarter
  • Remittances by Indians employed overseas fell to $15.8 billion
  • India’s foreign exchange reserves, excluding changes in currency valuation rose $14.6 billion during April-December 2015 as compared with $31.3 billion in the last year

Points to note

  • RBI governor– Raghuram Rajan
  • RBI headquarters– Mumbai
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AC Team 1

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