India's current account deficit narrows, helped by higher software exports, remittances

India's current account deficit narrowed to US$3.04 billion (€2.28 billion) in the October-December quarter from US$4.78 billion in the same period a year ago, the central bank said Friday, thanks to increased exports of software services and remittances.

The current account deficit is the broadest measure of foreign trade and covers not only export and import of goods and services but also non-capital inflows such as remittances. The deficit represents the amount India must borrow or get as investment from foreigners to balance its commercial transactions with the rest of the world. [Read more]