SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Q2 CAD widens to 2.1% of GDP on higher gold imports

Q2 CAD widens to 2.1% of GDP on higher gold imports

09 Dec 2014 Evaluate

India's Current Account Deficit (CAD) for the second quarter of the current financial year widened to $10.1 billion against $5.2 billion on Y-o-Y basis, which translates into 2.1% of GDP against 1.2% in the same quarter the previous year. Despite the expansion, CAD is well within RBI's comfort zone of 2.5% of GDP.

The deficit is not only higher on Y-o-Y basis, but also higher on sequential basis. CAD in the first quarter of the current financial year had been $7.8 billion and widened in reported quarter mainly on account of deceleration in export growth and an increase in gold imports.

While export growth slid to 4.9% in Q2 of 2014-15 from 11.9% on Y-o-Y basis, imports rose by 8.1% in Q2 FY15 as against a decline of 4.8% in the same quarter of the previous year, largely due to a sharp rise in gold imports. Trade deficit in Q2 rose to $38.56 billion against $34.6 billion in the preceding quarter.

However, net services receipts improved by 3.4% in Q2 as telecom, computer and IT services showed improvement from their level a year ago, net outflow on account of primary income (profit, dividend and interest) to $ 6.9 billion in Q2 was higher than Q2FY14 ($ 6.3 billion) as well as the preceding quarter ($6.7 billion).

The balance of payment stood at a surplus of $6.9 billion during July-September, a fourth consecutive quarter of surplus, although that was narrower than the $11.2 billion surplus in the previous quarter. On a BoP basis, there was a net accretion of $6.9 billion to India's foreign exchange reserves in Q2FY15 as against a drawdown of $10.4 billion in Q2FY14.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×