6/11/2015 Current account deficit shrinks massively to … account... · 6/11/2015 Current account...

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NSE BSE MARKET STATS As on 11/06/2015 SENSEX 26579.61 260.89 (0.97%) NIFTY 8045.05 79.40 (0.98%) GOLD (MCX) 26772.00 41.00 (0.15%) USD 64.05 0.02 (0.04%) GBPINR 99.16 0.17 (0.17%) NTPC : 138.80 0.86 ONGC : 304.00 0.44 PNB : 135.10 1.78 Power Grid Corpn. : 145.30 1.26 Reliance Industries : 888.85 1.87 SBI By: PTI (http://www.financialexpress.com/author/pti/) | Mumbai | June 10, 2015 7:43 pm Current account deficit narrows sharply to US dollar 1.3 bn or 0.2 per cent in fourth quarter of FY15, as against USD 8.3 bn or 1.6 per cent in Q3. (Reuters) The country’s current account deficit (CAD) narrowed sharply to USD 1.3 billion, or 0.2 per cent of GDP, in the fourth quarter of the last financial year on a sequential basis mainly on account of a lower trade gap. The same shrank to 1.3 per cent of GDP for full financial year 2014-15. “On a quarter-on-quarter basis, CAD narrowed sharply to USD 1.3 billion (0.2 per cent of GDP) in fourth quarter of financial year 2014-15 from USD 8.3 billion (1.6 per cent of GDP) in the third quarter,” the Reserve Bank said today. “The reduction in CAD in fourth quarter was primarily on account of lower trade deficit as net earnings through services and primary income (profit, dividend and interest) witnessed a decline in quarter-on-quarter terms though secondary income recorded a marginal increase of 0.4 per cent,” the central bank said in its ‘Developments in Balance of Payments’ report. On a year-on-year basis, however, CAD (which indicates Post Comments 167 Like Related Articles (http://timeline.financialexp &link=http://www.financiale sponsored-survey-expects- economy-to-grow-by-7-8- pct-in- fy16/79934/&timestamp=J 03, 2015&heading=RBI sponsored survey expects economy to grow by 7.8 pct in FY16 ) (http://timeline.financialexp &link=http://www.financiale bank-of-india-may-cut-rate- even-before-june-2-sbi- research/70175/&timestam 07, 2015&heading=Reserve Bank of India may cut rate even before June 2: SBI Research ) RBI sponsored survey expects economy to grow by 7.8 pct in FY16 Reserve Bank of India may cut rate even before June 2: SBI Research GDP growth rate in India to reach 8 pct by 2017: World Bank Current Upcoming Recent IND 239/0 BAN Oneoff Test, IND in BAN Rain Stoppage Scorecard GALLERIES (HTTP://WWW.FINANCIALEXPRESS.COM/PICTURE GALLERYSECTION/BUSINESSGALLERY/) IN THE NEWS (http://www.financialexpress.com/article/miscellaneous/cisf personnelairportemployeesclashatkozhikodeairport1 dead/83011/) CISF personnel, airport staff clash at Kozhikode airport leaves 1 dead (http://www.financialexpress.com/article/mi personnelairportemployeesclashat kozhikodeairport1dead/83011/) (http://www.financialexpress.com/article/miscellaneous/punjab farmerwhobriefedrahulgandhioncroplosscommits suicide/82884/) Punjab farmer, who briefed Rahul Gandhi on crop loss, commits suicide (http://www.financialexpress.com/article/mi Indigo, GoAir soar to top, Air India, Jet Airways, others lose out: All you wanted to know in 10 points (http://www.financialexpr gallery/82121/indigo goairsoartotopair indiajetairways spicejetothersloseout allyouwantedtoknow in10points/) Top 10 news today: Indian Army kills 15 insurgents in Myanmar, Khadse says namaz is yoga, AAP leader arrested (http://www.financialexpr gallery/82550/top10 newstodayindian armykills15 insurgentsinmyanmar khadsesaysnamazis yogaaapleader arrested/) Gold rate, BSE Sensex, NSE Nifty, Monsoon, Missing Dornier aircraft, more (http://www.financialexpr gallery/82359/goldrate bsesensexnsenifty monsoonmissing dornieraircraftmore/) Apple WWDC 2015: Music streaming, watch apps and 'El Capitan' (http://www.financialexpr gallery/81950/apple wwdc2015music streamingwatchapps andelcapitan/) 1 3 0 G+ 0 - TIMELINE Current Account Deficit Reserve Bank Of India (http://timeline &link=http://www.financ finance/rbi-guv-raghuram-r capital-flows/74971/&tim insured to withstand volat India self-insured to withsta Rajan Editorial: IIP waits to be re-b

Transcript of 6/11/2015 Current account deficit shrinks massively to … account... · 6/11/2015 Current account...

Page 1: 6/11/2015 Current account deficit shrinks massively to … account... · 6/11/2015 Current account deficit shrinks massively to 0.2% of GDP in Q4 of FY15: Reserve Bank of India |

6/11/2015 Current account deficit shrinks massively to 0.2% of GDP in Q4 of FY15: Reserve Bank of India | The Financial Express

http://www.financialexpress.com/article/economy/januarymarchcurrentaccountdeficitnarrowsto02pctofgdpreservebankofindia/82831/ 1/5

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Current account deficit shrinks massively to0.2% of GDP in Q4 of FY15: Reserve Bankof IndiaThe country's current account deficit (CAD) narrowed sharply to US Dollar 1.3 billion, or 0.2 per cent of GDP,in the fourth quarter of the last financial year on a sequential basis mainly on account of a lower trade gap.

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MARKET STATS As on 11/06/2015

SENSEX26579.61

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NIFTY8045.05

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NTPC : 138.80 0.86 ONGC : 304.00 0.44 PNB : 135.10 1.78 Power Grid Corpn. : 145.30 1.26 Reliance Industries : 888.85 1.87 SBI : 254.50

By: PTI (http://www.financialexpress.com/author/pti/) | Mumbai | June 10, 2015 7:43 pm

Current account deficit narrows sharply to US dollar 1.3 bn or 0.2 per cent in fourth quarter of FY15, as against USD8.3 bn or 1.6 per cent in Q3. (Reuters)

The country’s current account deficit (CAD) narrowed

sharply to USD 1.3 billion, or 0.2 per cent of GDP, in the

fourth quarter of the last financial year on a sequential

basis mainly on account of a lower trade gap.

The same shrank to 1.3 per cent of GDP for full financial

year 2014-15.

“On a quarter-on-quarter basis, CAD narrowed sharply to

USD 1.3 billion (0.2 per cent of GDP) in fourth quarter of

financial year 2014-15 from USD 8.3 billion (1.6 per cent of

GDP) in the third quarter,” the Reserve Bank said today.

“The reduction in CAD in fourth quarter was primarily on

account of lower trade deficit as net earnings through

services and primary income (profit, dividend and interest)

witnessed a decline in quarter-on-quarter terms though

secondary income recorded a marginal increase of 0.4 per

cent,” the central bank said in its ‘Developments in Balance

of Payments’ report.

On a year-on-year basis, however, CAD (which indicates

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http://www.financialexpress.com/article/economy/januarymarchcurrentaccountdeficitnarrowsto02pctofgdpreservebankofindia/82831/ 2/5

imports of goods services and transfer are higher than

their exports) in fourth quarter was a shade higher than USD 1.2 billion, or 0.2 per

cent of GDP, in the same quarter of financial year 2013-14.

For the full fiscal (financial year 2014-15), the current account deficit shrank to

USD 27.5 billion, or 1.3 per cent of GDP, from USD 32.4 billion, or 1.7 per cent of

GDP, a year ago, RBI (http://www.financialexpress.com/tag/rbi/) said.

Merchandise trade deficit at USD 31.7 billion in fourth quarter contracted sharply

on a Q-o-Q basis on account of a larger decline in merchandise imports (13.4 per

cent) than in merchandise exports (10.4 per cent).

However, in terms of Y-o-Y changes, the trade deficit in fourth quarter widened

marginally as exports registered a larger decline (15.4 per cent) than imports (10.4

per cent).

“In financial year 2014-15, trade deficit narrowed to USD 144.2 billion from USD

147.6 billion last year,” the data showed.

During the January-March period, on a balance of payment (BoP) basis, there was

highest ever net accretion of USD 30.1 billion to the foreign exchange reserves in a

single quarter.

“It was more than double the accretion in the preceding quarter and almost four

times of the reserves accrued in fourth quarter, signifying record increase in

capital inflows and dip in current account deficit, RBI said.”

On a cumulative basis, the overall BoP during financial year 2014-15 showed

improvement over the preceding year, RBI said.

Lower CAD, on the back of contraction in trade deficit and marginal improvement

in the net invisible earnings, along with a sizable increase in net financial flows

enabled a large build-up of reserves, the central bank said.

Meanwhile, the RBI said it added a whopping USD 61.4 billion to the foreign

exchange reserves in financial year 2014-15 compared to USD 15.5 billion in the

previous fiscal.

At the end of March, 2015, the level of foreign exchange reserves stood at USD

341.6 billion.

Domestic rating agency Care Ratings attributed the shrinkage in the trade deficit

(imports exceed exports) at USD 144 billion to higher software receipts of USD 70

billion and invisibles of USD 65.5 billion.

It said in the last fiscal, total foreign investment was USD 73.5 billion – USD 32.6

billion from FDIs and USD 40.9 billion from FIIs. NRIs contribution was at USD 12

billion.

Going ahead, “we could expect the CAD to be range-bound. Under the current

conditions of low crude oil prices (USD 60-70 per barrel range), stagnant exports

given the limited pick up in the world economy, and some pick up in software

receipts, the CAD would be in the range of 1.5-2 per cent of GDP this fiscal

(financial year 2015-16),” Care said.

For Updates Check Economy News

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6/11/2015 Current account deficit shrinks massively to 0.2% of GDP in Q4 of FY15: Reserve Bank of India | The Financial Express

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