Current account deficit hits all-time high of 4.2% in FY12

With a sharp rise in the import bill and an economic downturn, India’s current account deficit (CAD) shot up to $78.2 billion (4.2 per cent of gross domestic product) for the year ended March 2012, from $46 billion (2.7 per cent of GDP) the previous year. This is the highest level of CAD ever — both in absolute terms and as a proportion of GDP — according to the Reserve Bank of India.

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