The Asian Age

Curbs on gold nar­row CAD

- AGE COR­RE­SPON­DENT

A steep de­cline of 57.2 per cent in gold im­ports, which amounted to $ 7.0 bil­lion con­trib­uted sig­nif­i­cantly to the sharp nar­row­ing of the cur­rent ac­count deficit to $ 7.8 bil­lion ( 1.7 per cent of GDP) in Q1 of 2014- 15 from $ 21.8 bil- lion ( 4.8 per cent of GDP) in Q1 of 2013- 14. It was how­ever higher than $ 1.2 bil­lion ( 0.2 per cent of GDP) in Q4 of 2013- 14. Gold im­ports in Q1 of 2013- 14 were $ 16.5 bil­lion.

The RBI which re­leased the pre­lim­i­nary data on In­dia’s BoP for Q1, i. e., AprilJune, 2014- 15, on Mon­day said the lower CAD was pri­mar­ily on ac­count of a con­trac­tion in the trade deficit con­trib­uted by a rise in ex­ports and a de­cline in im­ports.

On a BoP ba­sis, mer­chan­dise ex­ports at $ 81.7 bil­lion in­creased by 10.6 per cent in Q1 of 2014- 15 as against a de­cline of 1.5 per cent in Q1 of 2013- 14. But mer­chan­dise im­ports at $ 116.4 bil­lion mod­er­ated by 6.5 per cent in Q1 of 2014- 15 as against an in­crease of 4.7 per cent in Q1 of 2013- 14.

Non- gold im­ports recorded a rise of 1.3 per cent as against de­cline of 0.6 per cent re­flect­ing some re­vival in eco­nomic ac­tiv­ity.

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