The current account deficit, the difference between outflow and inflow of foreign exchange, was $21 billion, or 5 per cent of the GDP, in the second quarter of last fiscal.
"Contraction in the trade deficit coupled with a rise in net invisibles receipts resulted in a reduction of the CAD to $26.9 billion (3.1 per cent of GDP) in H1 of 2013-14 from $37.9 billion (4.5 per cent of GDP) in H1 of 2012-13," Reserve Bank of India said in a statement.
Notwithstanding a lower CAD during April-September of 2013-14, there was a drawdown of foreign exchange reserve to the tune of $10.7 billion as against an accretion of $400
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