India's Current Account Deficit narrowed sharply to 1.7 per cent of the GDP in the April-June quarter of this fiscal mainly on account of reduction in trade deficit, and a steep decline in gold imports. RBI said in a statement that the lower CAD was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports.CAD narrowed sharply to 1.7 percent of the GDP in the first quarter of the 2014-15 fiscal, from 4.8 % of GDP in the year-ago period. However, it was higher than 0.2% of GDP in the fourth (January-March) quarter of the previous fiscal, 2013-14. Decline in imports was primarily led by a steep 57.2% fall in gold imports, which amounted to USD 7 billion – significantly lower than USD 16.5 billion in the April-June quarter of 2013-14.