Current Account Deficit, CAD, narrowed sharply to 0.2 per cent of gross domestic product in the January-March quarter of 2014-15. In a statement, RBI said that the deficit shrank to 1.3 billion US dollar in the quarter. This is lower than the deficit of 8.3 billion dollar, or 1.6 percent of GDP, in the previous quarter. The bank said the reduction in CAD was primarily on account of lower trade deficit as net earnings through services and primary income witnessed a decline on a quarter-over-quarter term. A key measurement of a country's trade, the CAD is the amount by which the value of goods and services imported by it exceeds the value of goods and services exported in a period.