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cent of GDP.
The lower CAD during the second quarter was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports, RBI said.
Gold and silver imports in April-October 2013 declined by 12.86 per cent to USD 24 billion compared to USD 28 billion in the same period last year. Gold imports have fallen from 142 tonnes in April and 162 tonnes in May. They were at 23.5 tonnes in October, compared with 11.16 tonnes in September, 3.38 tonnes in August and 47.75 tonnes in July.
India imported an estimated 835 tonnes of gold in 2012-13, a key reason for the record current account deficit (CAD) of USD 88.2 billion, or 4.8 per cent of GDP.
On a BoP basis, merchandise exports increased by 11.9 per cent to USD 81.2 billion in second quarter of 2013-14 on the back of significant growth especially in the exports of textile products, leather products and chemicals.
On the other hand, it said, merchandise imports at USD 114.5 billion, recorded a decline of 4.8 per cent in July-September period of 2013-14 as compared with a decline of 3 per cent in in the year ago period, primarily led by a steep decline in gold imports, which amounted to USD 3.9 billion.
India imported gold worth USD 16.4 billion in first quarter of the current fiscal.
As a result, it said, the merchandise trade deficit contracted to USD 33.3 billion in the second quarter of 2013-14 from USD 47.8 billion a year ago.
Net outflow on account of primary income (profit, dividend and interest) amounting to USD 6.3 billion during the period was higher than that in the preceding quarter at USD 4.8 billion. While foreign direct investment recorded net inflows of USD 6.9 billion in the said period, net portfolio investment registered an outflow of USD 6.6 billion in the wake of indication given by US Federal Reserve about the tapering of its quantitative easing programme, it said.
There was a marginal net outflow of USD 0.8 billion under equities while the debt component of net FII flows recorded a higher outflow