CAD widened in Q4 2016-17 due to increase in merchandise imports: MoS Finance

New Delhi, Aug 8 (KNN) The Current Account Deficit (CAD) had widened in Quarter 4 of 2016-17 on a year-on-year basis (YoY) basis due to larger increase in merchandise imports in comparison to exports, the Parliament was informed.

“The widening of the CAD in Q4 of 2016-17 on a year-on-year (y-o-y) basis was on account of a higher trade deficit (US$ 29.7 billion) due to a larger increase in merchandise imports relative to exports,”  Arjun Ram Meghwal, Minister of State for Finance said this in a written reply to a question in Rajya Sabha.

High increase in imports of Petroleum, Oil & Lubricants (POL) and gold & silver imports led to the rise in imports in Q4 of 2016-17.

Despite the widening in Q4 of 2016-17, the CAD is low and within manageable limits. The Government and the RBI closely monitor the emerging external economic situation including CAD and calibrate policies on an on-going basis, he said.