India's lower current account deficit fuels economic optimism
MUMBAI (AFP) - India's current account deficit - the broadest measure of trade - narrowed to its lowest quarterly level in four years, fuelling optimism on Tuesday that Asia's third largest economy is on the mend.
The deficit slid to US$5.2 billion (S$6.5 billion), or 1.2 per cent of gross domestic product, in July-September compared to US$21.0 billion or five per cent of GDP in the same period last year, said the Reserve Bank of India (central bank).
"India's current account deficit is adjusting at a faster pace than expected by markets," said Siddhartha Sanyal, chief India economist at Barclays Capital.
The drop in the quarterly deficit to its lowest level since March 2009 was mainly due to rising exports and falling imports, particularly of gold, the central bank said in a statement.