India's CAD triples to 1.9% in Q4 year-on-year, pegged at 1.6% in FY18

RBI said the widening of the CAD on a year-on-year (y-o-y) basis in fourth quarter was primarily due to a higher trade deficit ($41.6 billion) brought about by a larger increase in merchandise import.

Trade deficit

The country’s current account deficit (CAD) rose to $13 billion (Rs 878 billion and 1.9 per cent of gross domestic product, or GDP) in the fourth and final quarter (Q4 of 2017-18), compared to $2.6 billion (Rs 176 billion and 0.4 per cent of GDP) in the same period of 2016 -17. It, however, moderated marginally from $13.7 billion (2.1 per cent of GDP) in the third quarter (October to December 2017), stated the Reserve Bank of India.   For the full financial year (2017-18), the deficit increased to 1.9 per cent of GDP, from 0.6 per cent in 2016-17. The trade ...