In Q4FY18, the CAD stood at 1.8 per cent of GDP. However, it rose to 2.1 per cent of GDP in FY19 from 1.8 per cent in FY18 “on the back of a widening trade deficit”, the Reserve Bank of India said in a statement on its website. In FY19, there was net outflow of portfolio funds of $2.4 billion, against an inflow of $22.1 billion a year ago. The trade deficit for the full year increased to $180.3 billion in FY19 from $160 billion in FY18.
In absolute terms, the CAD stood at $4.6 billion in the current fourth quarter, compared with $13 billion in the year-ago quarter and $17.7 billion in the third quarter of fiscal year 2018-19. “The contraction of the CAD on a year-on-year (yoy) basis was primarily on account of a lower trade deficit at $35.2 billion as compared with $41.6 billion a year ago,” the RBI said.
Foreign portfolio investment recorded net inflow of $9.4 billion in Q4FY19 — as compared to a net outflow of $2.1 billion in the October-December quarter. In the Q4FY18, the net inflow was close to $2.3 billion. Net foreign direct investment at $6.4 billion in Q4FY19 remained at the same level as in Q4FY18.
Net services receipts increased by 5.8 per cent year-on-year, mainly on the back of a rise in net earnings from telecommunications, computer and information services, the statement said. It added that private transfer receipts — mainly representing remittances by Indians employed overseas — at $17.9 billion, declined by 0.9 per cent from a year ago. Inflow on account of external commercial borrowings to India increased to $7.2 billion in Q4FY19, from $1 billion a year ago.
 "India’s current account deficit narrows sharply to 0.7% of GDP in Q4")