Current account deficit shrinks to 0.9% of GDP in July-Sept quarter: RBI

Foreign portfolio investment recorded net inflow of $2.5 billion, against an outflow of $1.6 billion in the year-ago quarter, due to higher flow in the debt market.

India’s current account deficit (CAD) in the July-September quarter (Q2) of 2019-20 fiscal year contracted to 0.9 per cent of the gross domestic product (GDP), from 2.0 per cent in Q1, primarily on account of lower trade deficit, the data released by the Reserve Bank of India (RBI) showed. In the year-ago period, the CAD was at 2.9 per cent of the GDP.
 
In absolute terms, the CAD came at $6.3 billion in Q2FY20, from $19.0 billion in the year-ago period, and $14.2 billion in the preceding quarter. The trade deficit in Q2 was at $38.1 billion, as against