The
balance of payments in India has come under significant pressure since late 2011, with the current
account deficit (CAD) reaching 6.5 percent of GDP in
2012Q4
In addition, the trade deficit reached a high of
8.6 percent of GDP in 2012Q4 from an average of
4.9 percent of GDP in 2010/11. At the same time, the
merchandize trade deficit widened to 12 percent of GDP
from an average of 10.1 percent of GDP in 2010/11.