India’s trade deficit shrunk to $5.2 billion (1.2% of gross domestic product) for the quarter ended September 2013, which is nearly 76% less than the deficit of $21.79 billion for the quarter ended June 2013.
The reduction in the CAD (current account deficit) is attributed to curbs on gold imports coupled with a smart recovery in exports following the depreciation of the rupee. Merchandise exports have risen by nearly 10% over the first quarter even as exports shrunk 8%.
The RBI advanced its release of trade data ostensibly to reassure markets as it withdrew most of the support measures introduced in the previous quarter to bolster the rupee. The rupee rose to a near two-week high on Monday before settling down at 62.31 against the dollar.
No comments:
Post a Comment