6/11/2015 CAD Falls to 1.3% of GDP in FY15  The New Indian Express

http://www.newindianexpress.com/business/news/CADFallsto1.3ofGDPinFY15/2015/06/11/article2860453.ece 1/4

Auto IPL - 2015 Ask Prabhu Indulge Health Food Tech Education Lifestyle Editorial Photos Videos Edex Social Stream Coupons

Thursday, June 11, 2015

GO

Home > Business > News

By ENS Economic Bureau Published: 11th June 2015 06:00 AM Last Updated: 11th June 2015 03:32 AM

Email 13 0

CAD Falls to 1.3% of GDP in FY15

MUMBAI: India’s current account deficit (CAD) for the year ended March 2015 shrank to $27.5billion, or 1.3 per cent of the gross domestic product (GDP) compared with $32.4 billion or 1.7 percent of GDP a year ago with modest increase in invisibles supported by some improvement in netservices receipts,  the Reserve Bank of India said on Wednesday.

The country’s trade deficit narrowed to $144.2 billion in year to March 2015 from $147.6 billion ayear earlier.

CAD is the measurement of a country’s trade, in which value of goods and services it importsexceeds the value of goods and services it exports.

Bankers say CAD of less than 2.5 per cent of GDP is easier to manage for a central bank. CADunder control also gives currency traders some comfort that the value of the local currency willhold.

“Going ahead, we could expect CAD to be range bound and under the current conditions of lowcrude oil prices in the range of $6070 per barrel, stagnant exports given the limited pick up inworld economy, and some pick up in software receipts, CAD would be in the range of 1.5% 2% ofGDP this year,’’ said Madan Sabnavis, chief economist at CARE Ratings.

“Capital flows would, however, be impacted due to the Fed move on interest rates and hencewhile the balance of payments would be positive, the accretion to reserves could be of a lowermagnitude,’’ he added.

In the quarter ended March 2015, India built up its highest ever accretion of $30.1 billion toforeign exchange reserves in a single quarter, RBI said.

“It was more than double the accretion in the preceding quarter and almost four times of thereserves accrued in fourth quarter of 201314, signifying record increase in capital inflows and dipin CAD,’’ RBI said.

On quarterly basis, the country’s CAD narrowed sharply to $1.3 billion or 0.2 per cent of GDP inthe fourth quarter ended March 2015, compared with $8.3 billion, or 1.6 per cent of GDP in thethird quarter and $1.2 billion or 0.2 per cent in the fourth quarter of the previous year endedMarch 2014.

“The reduction in CAD in fourth quarter of 201415 was primarily on account of lower trade deficitas net earnings through services and primary income such as profit, dividend & interest,witnessed a decline in quarteronquarter terms albeit secondary income recorded a marginalincrease of 0.4 per cent,’’ RBI said.

News Feed

0Like

   

New Indian Express@NewIndianXpress

+

Dredging On In FloodHit Sindh River Of Kashmir.Watch the Video here: http://t.co/pO8xmcfDC4

51 m

The New Indian Express

ISS Crew Set to Return to Earth After 199DaysOriginally scheduled for May 13, the mission wasextended for one month because of a Russian

Home Top News Nation World States Cities Business Columns Cricket Sport Entertainment Magazine The Sunday Standard E‐Paper

 

6/11/2015 CAD Falls to 1.3% of GDP in FY15  The New Indian Express

http://www.newindianexpress.com/business/news/CADFallsto1.3ofGDPinFY15/2015/06/11/article2860453.ece 2/4

Geelani's Man ShotDead in HisStronghold inJammu andKashmir

ISS Crew Set toReturn to EarthAfter 199 Days

Sensex Up over 100Points in EarlySession

India Vs BangladeshFirst Test: HeavyRain Delays SecondDay's Play

Fifa HQ RaidedAgain as Swiss SeizeIT Data

Instagram PhotosWill Look MuchBigger Now

Hyundai’s Next GenSanta Fe SUVLaunched in Korea,Indian Debut in 2016

Teachers FromIndia Urged to Applyfor Global TeacherPrize 2016

Movies

"As Long as There isLove,you can

Travel

Repeaters of the Sea

Food

The Nizam of RoyalCuisine

Books

Sunlight on a BrokenColumn

Cabinet Approves Four Laning NH163in Telangana1 comment • 20 hours ago

AvatarAghora Subramanyan — good start after1 year in govt.

Tamil Writer Imayam's Bestseller'Pethavan' Now in English1 comment • 21 hours ago

AvatarRama — Call to Ambedkar Periyargroup.Blame Brahmins for the death ofDalit girl murdered by her father.!!!! …

Pakistan Urges UN to Take Note ofModi's Remark on 1971 War3 comments • 19 hours ago

AvatarSyed Saqib Shah — I always think backto India stabbed Pakistan in 1971 , Indiais responsible for what …

IPKF Memorial in Jaffna Gets SecondFace Lift1 comment • 2 days ago

AvatarPiranha — A facelift for the memorial forthe Indian People Killing Force? What atravesty! I am sure all the …

ALSO ON THE NEW INDIAN EXPRESS

0 Comments The New Indian Express  Login1

 Share⤤ Sort by Newest

Start the discussion…

Be the first to comment.

WHAT'S THIS?

Subscribe✉ Add Disqus to your sited Privacy

 Recommend

Disclaimer: We respect your thoughts and views! But we need to be judicious while moderating yourcomments. All the comments will be moderated by the NIE editorial. Abstain from posting comments that areobscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinksinside the comment. Help us delete comments that do not follow these guidelines.

Read More

Crowdynews Full Screen Social News

English Horoscope Style

Name Gender M   F

Date of birth 11 June 1990

Time of birth 11 30 AM  PM

City of birth Email 

India's Nationalist President Conquers the Worldby Waging Peace and Talking Business

Scripting History, Manobi is Asia's FirstTransgender Principal

SMEs, Startups Fuelling IT Sunrise in Kochi,Thiruvananthapuram

Amid Hype, Many Startups Live by the 'Fail Fast,Fail Early' Principle

Astrology

Today's Pick

rocket failure in April.

Read more

10 m

Editor's Picks Most Read Most Emailed

Chennai

24 Lakh AdolescentsWork in HazardousIndustries in India: ILO

More

Nation

A Month after BriefingRahul, Punjab FarmerKills Self

More

Nation

No End in Sight toDrama, Now Delhi HasTwo Home Secretaries

More

Kerala

CISF Staffer Killed in Calicut Airport Gun

6/11/2015 CAD Falls to 1.3% of GDP in FY15  The New Indian Express

http://www.newindianexpress.com/business/news/CADFallsto1.3ofGDPinFY15/2015/06/11/article2860453.ece 3/4

more

Overcome Anything" more more more

"As Long as There is Love,you can Overcome Anything"Read: bit.ly/1KXYowB

Retweeted by New Indian Express

Xpress_Life @Xpress_Life

Expand

Dinos Back on Screens ‐@Danny_TNIE Read: bit.ly/1KXYcxk pic.twitter.com/c5y6UzFG6O

Retweeted by New Indian Express

Xpress_Life @Xpress_Life

Show Photo

Is Paris Hilton Dating a Millionaire? Read: bit.ly/1Mr23n6 pic.twitter.com/PMPbEBF5PP

Retweeted by New Indian Express

Xpress_Life @Xpress_Life

Show Photo

2m

2m

5m

Tweets Follow

Tweet to @NewIndianXpress

StatesNaidu Takes ScamFight to Delhi

TS Gives Nod to TwoIrrigation Projects

Staff Stashed AwayRs 506cr GovernmentFunds in Banks:Panel

Adani Bid to DropAnchor at KeralaGets Green Light

Failure inExamination DrivesTwo Class IX Boys toDeath

CBI Going Slow inPonzi Scam Probe:Raja

Recent Activity

Scuffle With AAI Staff

More

Nation

Manipur Ambush: After4 Days of Planning, 45‐Minutes Strike OnCamps More

6/11/2015 CAD Falls to 1.3% of GDP in FY15  The New Indian Express

http://www.newindianexpress.com/business/news/CADFallsto1.3ofGDPinFY15/2015/06/11/article2860453.ece 4/4

Find us on Facebook

The New Indian Express

2,451,050 people like The New Indian Express.

Facebook social plugin

Like

Top News Nation World States Cities Business Columns Sport Cricket Entertainment PR Corner

Dinamani Kannada Prabha Sakhi Cinema Express Malayalam Vaarika Coupons

Archives About Us Contact Us Privacy Policy Terms of Use Advertise With Us

Copyright © 2015, The New Indian Express. All rights reserved.