Current account deficit is the trade deficit plus the invisibles in India’s balance sheet. One big advantage of weak oil prices is that the current account deficit (CAD) has come down sharply to just 0.2% of GDP in the third quarter from 2.7% in the third quarter of the previous year. Weak oil prices and imports falling much faster than exports have resulted in lower CAD. While the trade deficit came down sharply, the net services receipts were up during the period. Even private remittances have been growing at a much faster clip. The third quarter also saw a $21.6 billion accretion to the forex reserves chest. Falling CAD has two implications. It prevents the rupee from falling too much and also protects the sovereign rating of the economy.