India CAD is with in tolerance level 1.7% of GDP

India current account deficit in the first quarter of this fiscal year has decreased as compaired to 1st quarter of FY 14 .

But the deficit has increased substantially in June quarter ( April~June 14 ) as compaired to last quarter of FY 14 ( Jan ~March 14 )

Q1 / FY 14 --> USD 21,8 Billion ( 4.8% of GDP )

Q4/ FY 14 --> USD 1.3 Billion ( 0.3% of GDP )

Q1 / FY 15 -> USD 7.9 Billion ( 1.7% of GDP )

Better Current account deficit will keep the INR under support level of around 59~61

RBI has been buying dollar since august 2013 to support the Export sector with out which INR would have been around 58 by now .

RBI has already added USD 40 Billion to India forex reserve since August 2013 and the eserve has almost touched USD 320 Billion .

It is expected that CD will be around 2% of GDP for the complete year of FY 15