<p>India's current account deficit (CAD) in Apr-Jun is expected to be around $22 to $23 billion, higher than expected due to huge gold imports especially in May, a finance ministry official said.<br /><br /></p>.<p>“We expect it to be $22-23 billion...first quarter was not a good quarter for balance of payments, there were (huge) gold imports,” the official said.<br /><br />The Reserve Bank of India will release CAD data on Monday. <br /><br />According to statistics released by commerce and industry ministry, trade deficit in Apr-Jun widened to $50.2 billion from $45.2 billion a quarter ago. The ministry has estimated gold and silver imports during the April-June period to be $18.4 billion.<br /><br />A current account gap of $22.8 billion would translate into approximately 5.1 per cent of gross domestic product.<br /><br />The current account deficit is unlikely to slip below 5 per cent of GDP, the official said.<br />Anything less than 5 per cent will be a bonanza (on current account deficit)., he said.<br />India's capital account, however, may manage to finance the CAD, the official said.<br /><br />“The first quarter capital account we are managing (to finance the current account). Foreign institutional investments were good till May. Foreign direct investment was okay, it was around $4 to $5 billion. Roughly (we expect) $23-$24 billion from the capital account,” the official said.</p>
<p>India's current account deficit (CAD) in Apr-Jun is expected to be around $22 to $23 billion, higher than expected due to huge gold imports especially in May, a finance ministry official said.<br /><br /></p>.<p>“We expect it to be $22-23 billion...first quarter was not a good quarter for balance of payments, there were (huge) gold imports,” the official said.<br /><br />The Reserve Bank of India will release CAD data on Monday. <br /><br />According to statistics released by commerce and industry ministry, trade deficit in Apr-Jun widened to $50.2 billion from $45.2 billion a quarter ago. The ministry has estimated gold and silver imports during the April-June period to be $18.4 billion.<br /><br />A current account gap of $22.8 billion would translate into approximately 5.1 per cent of gross domestic product.<br /><br />The current account deficit is unlikely to slip below 5 per cent of GDP, the official said.<br />Anything less than 5 per cent will be a bonanza (on current account deficit)., he said.<br />India's capital account, however, may manage to finance the CAD, the official said.<br /><br />“The first quarter capital account we are managing (to finance the current account). Foreign institutional investments were good till May. Foreign direct investment was okay, it was around $4 to $5 billion. Roughly (we expect) $23-$24 billion from the capital account,” the official said.</p>
