CAD narrows to 1.6% of GDP in October-December

India's current account deficit (CAD) for the October-December quarter narrowed sequentially to $8.2 billion, or 1.6% of gross domestic product, but nearly doubled year-on-year, the Reserve Bank of India said on Tuesday.

India's current account deficit (CAD) for the October-December quarter narrowed sequentially to $8.2 billion, or 1.6% of gross domestic product, but nearly doubled year-on-year, the Reserve Bank of India said on Tuesday.

CAD - the measure of the difference between inflows and outflows of a foreign currency - stood at $10.1 billion, or 2% of GDP, in July-September and $4.2 billion, or 0.9%, a year ago.

"The reduction in CAD in the third quarter was primarily on account of net exports of services, which picked up in quarter-on-quarter terms on the back of an improvement in net earnings through travel and software services, and lower net outflows under primary income (profit, dividend and interest)," RBI said.

Meanwhile, the balance of payment was at a surplus of $13.2 billion in the third quarter, a fifth consecutive quarter of surplus, the central bank said.