CAD comes down to 3.6% in Jan-Mar; hits record 4.8 pc in FY'13

India's current account deficit narrowed down to 3.6 per cent of GDP in the January-March quarter but totalled a record 4.8 per cent for the full 2012-13 fiscal.
"CAD moderated sharply to 3.6 per cent of GDP in Q4 of 2012-13 from a historically high level of 6.7 per cent of GDP in Q3 of 2012-13 as trade deficit narrowed," RBI said today.
The moderation in CAD was due to non-oil and non-gold imports falling due to slowing economic growth.
The current account gap in the March quarter was USD 18.1 billion, or 3.6 per cent of GDP, lower than USD 21.7 billion deficit a year earlier.

"Essentially non-oil, no-gold components of imports showed a decline, reflecting slowdown in domestic economic activity," RBI said.
During 2012-13, CAD stood at USD 87.8 billion (4.8 per cent of GDP) as against USD 78.2 billion (4.2 per cent of GDP) during 2011-12.
The Finance Ministry, meanwhile, said "the short-term increase or decrease in CAD should not be a cause for either optimism or pessimism".
"We must look at the figure at the end of the year where the CAD stands," it said. "Markets have been over reacting as we have seen in the case of prediction for CAD last year which were much higher than 5 per cent and we have seen that it is much lower than 5 per cent," RBI said.