Current Account deficit falls in December qtr, says RBI

Mumbai, Mar 31 (UNI) India's current account deficit in the October-December quarter stood at USD 3.85 billion, narrower than a revised USD 5.06 billion in the July-September quarter, according to data provided by Reserve Bank of India today.

It shows the October-December merchandise trade deficit of USD 12.03 billion was largely offset by robust inflows from invisibles, which included earnings from services such as software exports and transfers from non-resident Indians. The July-September deficit was USD 14.64 billion.

RBI said, the balance of payments deficit at the end of October-December was USD 4.73 billion, compared with a surplus of USD 5.26 billion in the July-September quarter.

While the import payments showed moderation with 17.8 per cent growth in the December quarter, the export growth continued at a higher pace that led to a trade deficit of USD 12 Billion in the December quarter.

The current account registered a USD 5.4 billion deficit for the whole of fiscal 2004-05, the first shortfall in four years.

The external debt also fell to USD 119.2 billion at the end of the October-December quarter from USD 124.2 billion in the July-September quarter.

The drop was due to a fall in external commercial borrowings by Indian corporates and the redemption of foreign currency deposits known as India Millenium Deposits in December.

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