TaxTMI 
TaxTMI 
Factors Responsible for Widening of Current Account Deficit
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....actors Responsible for Widening of Current Account Deficit <br>News and Press Release<br>Dated:- 8-8-2017<br><BR>India's current account deficit (CAD) at US$ 3.4 billion (0.6 per cent of GDP) in Q4 of 2016-17 was higher than US$ 0.3 billion (0.1 per cent of GDP) in Q4 of 2015-16 but narrowed from US$ 8.0 billion (1.4 per cent of GDP) in the preceding quarter. For 2016-17 full year, the current acc....
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....ount deficit (CAD) narrowed down to 0.7 per cent of GDP from 1.1 per cent of GDP in 2015-16. Quarterly data on India's CAD are given in Table 1. Table 1: India's Current Account Balance Quarters CAD (US$ billion) CAD as Per cent of GDP 2015-16 Q1 -6.1 -1.2 2015-16 Q2 -8.5 -1.7 2015-16 Q3 -7.1 -1.4 2015-16 Q4 -0.3 -0.1 2016-17 Q1 -0.4 -0.1 2016-17 Q2 -3.4 -0.6 2016-17 Q3....
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.... -8.0 -1.4 2016-17 Q4 -3.4 -0.6 Source: India's Balance of Payments Statistics The widening of the CAD in Q4 of 2016-17 on a year-on-year (y-o-y) basis was on account of a higher trade deficit (US$ 29.7 billion) due to a larger increase in merchandise imports relative to exports. High increase in imports of Petroleum, Oil & Lubricants (POL) and gold & silver imports led to the rise in ....
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....imports in Q4 of 2016-17. Despite the widening in Q4 of 2016-17, the CAD is low and within manageable limits. The Government and the RBI closely monitor the emerging external economic situation including CAD and calibrate policies on an on-going basis. This was stated by Shri Arjun Ram Meghwal, Minister of State for Finance in written reply to a question in Rajya Sabha today.<BR> News - Press rel....
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....ease - PIB....