CAD @ a 4 year low

Rising exports and moderation in gold imports have pulled down India’s current account deficit (CAD) sharply to $4.2 billion, or 0.9% of GDP, in December quarter of 2013-14 — a four-year low. “The lower CAD was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports,” the Reserve Bank said while releasing the external sector data.
The CAD, which reflects difference between inflow and outflow of foreign currency, stood at $31.9 billion, or 6.5% of GDP, in October-December quarter of 2012-13. It narrowed to $31.1 billion (2.3% of GDP) in April-December 2013 from $69.8 billion (5.2% of GDP) in April-December of 2012.
The reduction, RBI said, was due to contraction in the trade deficit, coupled with a rise in net invisible receipts.