Indian Current account deficit widened to 1.9% of GDP in Q4 of last fiscal to USD 13 bn. This is against USD 2.4 bn in Q4 of prior fiscal. Imports grew at 15.7%, while exports climbed 6.3% in Q4. Merchandise trade deficit in Q 4 (2017-18) climbed to 41.6 bn (5.9% of GDP) from USD 30 bn in previous fiscal. Capital inflows was enough to offset CAD. Inflows surged to USD 24.6 bn (3.5% of GDP) from USD 10.4 bn in prior fiscal. FX reserves accretion was a healthy USD 13 bn in Q4. FDI inflows was apprx USD 7.4 bn. FPI inflows dented due to outflow from debt markets. NRI inflows, trade credits and account receivables offset debt outflows. Invisibles grew by 5.2% to USD 28.6 bn. This is the lowest growth in a decade. Domestic savings also declined to 29% of GDP in Q4 and averaged 28.8% in last fiscal, also the lowest in a decade.
If Crude climbs and stays above USD 75, CAD could expand to 2.5% of GDP.