These have been reflected in a significant moderation in CAD in Q4 of 2012–13.
Though the CAD in the first quarter of 2013–14 was higher at 4.9 per cent of GDP, going forward, it is expected that the deficit would moderate significantly due to reduced imports of gold, growing exports, particularly in the context of improved economic conditions of the advanced countries and the lagged impact of the rupee depreciation on the trade balance.