Current account deficit hits record high of 6.7% of GDP

Underscoring the Reserve Bank of India’s (RBI) worries over the external sector, India’s current account deficit (CAD) ballooned to 6.7% of gross domestic product in the October-December quarter of 2012-13, a 61% jump year-on-year. The deficit surpassed the most pessimistic estimate of 6.4%, widening to $32.63 billion on the back of weak exports and a moderation in private transfers — up from $20.16 billion a year ago and $22.63 billion in July-September.

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