The FINANCIAL — India’s current account deficit narrowed sharply in the three months ended in March thanks to a smaller trade deficit, the country’s central bank said on June 10, according to Nasdaq.
The shortfall in the current account balance of Asia’s third-largest economy shrunk to $1.3 billion, or 0.2% of gross domestic product, from $8.3 billion, or 1.6% of GDP, in the preceding three months, the Reserve Bank of India said in a statement.
The merchandise trade deficit stood at $31.7 billion during the quarter as imports declined more than exports.
The quarter also witnessed the highest ever net addition to foreign exchange reserves, which increased by $30.1 billion, or more than double the increase in the preceding quarter.
For the full fiscal year ended in March, the current account deficit narrowed to 1.3% of GDP, from 1.7% the year before.
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