Current a/c deficit at $16.9 billion in July-Sept

Written by Reuters | Mumbai | Updated: Dec 31 2011, 09:10am hrs
Indias current account deficit remained unchanged at $16.9 billion in the September quarter from a year earlier, as a widening trade gap was offset by service-related inflows.

The current account, which comprises merchandise trade and inflows from services like transport and travel, however, widened over the $15.8 billion deficit in the April-June quarter, the central bank said on Friday.

We have to see how non-oil imports respond to the domestic economic slowdown. If these imports remain inelastic, we could see the current account deficit rise to above 3% of GDP for FY12, said Rupa Rege Nitsure, chief economist at Bank of Baroda.