CAD to improve in 4th quarter: Rangarajan

New Delhi (PTI): C Rangarajan, chairman of the Prime Minister's Economic Advisory Council, on Friday said India's current account deficit (CAD) is expected to improve in the last quarter of this fiscal year on account of a likely uptick in exports. According to him, the current financial year is likely to end with a current account deficit of over 5 per cent. "The current account deficit (in the quarter ended December) was higher than expected. But I believe it will come down during the fourth quarter (January-March). For the year as a whole, I expect CAD to be a little higher than 5 per cent," Mr Rangarajan said. CAD is the difference between inflow and outflow of foreign funds. The country's current account deficit has widened to a record high 6.7 per cent of its gross domestic product (GDP) in the December quarter, government data showed on Thursday. CAD widened to a historic high of 6.7 per cent of GDP in the December quarter to $32 billion on account of surge in oil and gold imports, besides weak exports.