"During Q1 of 2012-13, a moderation in trade deficit due to sharper decline in imports as compared with exports coupled with improvements in secondary income, led to decline in CAD in absolute terms as compared with Q1 of the previous year," RBI said.
On a Balance of Payment (BoP) basis, it said, goods exports recorded a decline of 2.6 per cent while imports registered a sharper decline of 3.6 per cent during the April-June period of 2012-13.
However, it said, as a proportion of GDP -- which represents the difference between exports and imports after considering cash remittances and payments -- it rose to 3.9 per cent as compared with 3.8 per cent in same quarter of the previous year.
Consequently, the CAD at USD 16.4 billion was lower in April-June period of 2012-13 than the corresponding quarter of the previous year at USD 17.4 billion.
It reflected the fall in the growth of GDP and rupee depreciation of about 17 per cent against US dollar over the corresponding quarter, it said.
However, the Rupee rose to a near five-month high of 52.49 to the dollar today, marking a strong recovery from a record low of 57.32 hit in late June due to the deteriorating external deficits. MORE
