Coal news and updates

CAD narrower than expected, wider quarter-on-quarter

September 30: India's current account deficit (CAD) was narrower than expected at $21.8 billion, or 4.9% of gross domestic product, in the June quarter, according to Reserve Bank of India data. Still, it was wider than the $18.17 billion, or 3.6% of GDP, in the three months ending March, on a seasonal slowdown in exports and firm imports. However, economists expect the gap to ease in the subsequent quarters as government steps to increase the import duty on gold have constricted imports of the metal, while improving global demand and a weaker Indian currency are expected to help exports. India's balance of payments slipped marginally into deficit for the June quarter at $346 million versus a surplus of $2.68 billion in March quarter. India's financial and capital account, which includes foreign direct investment, portfolio investment and overseas borrowing by Indian companies, was a surplus of $20.8 billion in the June quarter compared to a surplus of $17.8 billion in the March quarter. India's high current account gap has made the country especially vulnerable to a surge in capital flows out of emerging markets in recent months, sending the rupee down by as much as 20% this year to a record low on August 28, although it has since recovered some of that ground.