The country’s current account deficit (CAD) narrowed sharply to USD 1.4 billion, or 0.2 per cent of GDP, for the December 2019 quarter, the Reserve Bank of India (RBI) said on Thursday.
The deficit had stood at 2.7 per cent in the correspondingquarter a year ago and 0.9 per cent in the previous quarter.
The sharp contraction in the deficit was mainly due to alower trade deficit of USD 34.6 billion, and a rise in net services receipts,the central bank said.The CAD, a critical indicator of themacroeconomic health, represents the gap between the overall foreign exchangeexpended and received in the economy. The release of the data, coming at a timewhen markets are spooked due to the coronavirus concerns, will help providehope to investors.