India's current account deficit (CAD) for the March quarter was $18.1 billion, or 3.6% of GDP, which was lower than expected and below the $21.7 billion deficit a year earlier.

The current account gap for the full fiscal year ended March 2013 was $87.8 billion, which was 4.8% of GDP compared with $78.2 billion (4.2%) a year earlier.

"Essentially, non-oil, non-gold components of imports showed a decline, reflecting slowdown in domestic economic activity," the RBI said. Read More