India’s current a/c deficit widens

MUMBAI: India's October-December current account deficit widened sharply from a year earlier, driven by higher imports, data from the Reserve Bank of India showed on Friday.

The deficit widened to 2.0 percent of gross domestic product, or $13.5 billion, up from 1.4 percent, or $8.0 billion, in the corresponding period a year ago. "The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit brought about by a larger increase in merchandise imports relative to exports," the RBI said in a statement on India´s balance of payments.

India´s trade deficit widened to $44.1 billion from $33.3 billion a year ago while the balance of payments posted a surplus of $9.4 billion in the October-December period, compared with a deficit of $1.2 billion a year ago, helped by a stronger capital account.