India's current account deficit (CAD) for the first quarter ended June 2014 narrowed sharply to 1.7% for gross domestic product ($ 7.8 billion) from 4.8% of GDP ($21.8 billion) in Q1 ended June 2013. The fall in CAD was aided by contraction in trade deficit on rise in exports and dip in imports.
The CAD for fourth quarter (March 2014) of 2013-14 was 0.2% of GDP
Along with improvement on current account front, the balance of payments (BoP) situation for Q1 was also on healthy wicket. There was accretion of $11.2 billion to foreign exchange reserves in Q1 of 2014-15 as against drawdown of $300 million in the same quarter of 2013-14, RBI said in statement today.
RBI released CAD and BOP data ahead of usual publication of information. Under normal schedule, RBI releases information for first quarter (June quarter) at the end of September.