This was reflected in the widening of the current account deficit (CAD) to 3.0 per cent of GDP during 2008–12 from 0.3 per cent during the high growth phase. In fact, the CAD was record high at 4.2 per cent of GDP in 2011–12.
The sharp increase in imports of gold and crude oil – the latter reflecting in parts increase in global prices and incomplete domestic price pass-through – largely contributed to the deterioration in CAD.