India's current account deficit falls in Q3

Mumbai: India's current account deficit (CAD) dropped to $7.1 billion or 1.3 per cent of GDP in the third quarter of 2015-16 on account of narrowing trade deficit, Reserve Bank of India (RBI) said on Monday.

"India's current account deficit (CAD) at $7.1 billion or, 1.3 percent of GDP in Q3 (October-December) of 2015-16 was lower than $7.7 billion or, 1.5 percent of GDP in Q3 of 2014-15," an RBI release said.

"The contraction in CAD was primarily on account of a lower trade deficit ($34 billion) than in Q3 of last year ($38.6 billion)."

RBI also said foreign exchange reserves (on a balance of payment basis) increased by $4.1 billion in October-December quarter of the current fiscal.