India's current account deficit narrows sharply to 0.7% of GDP in Q4

In absolute terms, the CAD stood at $4.6 billion in the current fourth quarter, compared with $13 billion in the year-ago quarter and $17.7 billion in the third quarter of fiscal year 2018-19

India’s current account deficit (CAD) narrowed sharply to 0.7 per cent of the gross domestic product (GDP) in the fourth quarter ended March 31, 2019 (Q4), from 2.7 per cent in the third quarter ended December 2018, primarily on account of a lower trade deficit, even as foreign portfolio inflows remained robust.

In Q4FY18, the CAD stood at 1.8 per cent of GDP. However,  it rose to 2.1 per cent of GDP in FY19 from 1.8 per cent in FY18 “on the back of a widening trade deficit”, the Reserve Bank of India said in a statement on its website. In