India's current account deficit soars to record 6.7%
NEW DELHI (AFP) - India's current account deficit hit a record 6.7 per cent of GDP in the last quarter, official data showed on Thursday, underscoring the nation's weak finances.
The worse-than-expected deficit for the three months to December stemmed mainly from large oil and gold imports and weaker exports amid the global economic downturn.
The figures were more bad news for the Congress-led government which is struggling to stimulate India's economy, whose growth for the financial year to March 31, 2013 is expected to be five per cent - the weakest pace in a decade.
The hefty current account deficit, the gap between inflows of foreign currency and outflows, totaled US$32.6 billion (S$40.5 billion) or a record 6.7 per cent of gross domestic product (GDP).