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.