India's current account deficit falls in Q3

It dropped to $7.1 billion or 1.3% of GDP in the third quarter of FY16

India's current account deficit (CAD) dropped to $7.1 billion or 1.3 per cent of GDP in the third quarter of FY16 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 financial year.