CAD widens to 1.9% of GDP in Q4FY18

    Higher software exports and remittances have failed to salvage the current account deficit which rose to 1.4% of GDP pushing the import bill from 0.4% of GDP a year ago on account of rising crude and commodity prices. Current account deficit(CAD), the excess of a country’s imports over exports rose to $ 13.0 billion or 1.9 percent of GDP in Q4 of 2017-18 , up from $ 2.6 billion or 0.4 per cent of GDP in Q4 of 2016 -17, but moderated marginally from $ 13.7 billion or 2.1 per cent of GDP in the Q3 of 2017-18, according to the preliminary numbers released by the Reserve Bank of India. RBI said that the increase in CAD was mainly due to widening of trade deficit which rose by 405 to $41.6 billion during the quarter from $29.7 billion, a year ago. Crude oil accounts for a fourth of India’s merchandise imports and crude prices increased 5 per cent during the quarter to touch $68.4 per barrel by end of March Read more...

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