India has third largest current account deficit.

Here's more on India's current account deficit. It must be noted that India's high current account deficit has been one of the chief reasons for the sharp decline of the Indian rupee against the US dollar over the last few months. There has been a reversal of cheap global liquidity from emerging markets after the US Fed's hint of a likely tapering of the QE program. As a result, the rupee has fallen over 20% against the dollar since May 2013.

Today's chart of the day shows that India has the third highest current account deficit in the world in absolute terms. As per IMF data as of April 2013, India's current account deficit stood at US$ 98 bn (-4.9% of GDP). This is significant deterioration since 2007 when India had a deficit of US$ 8 bn and ranked 19 on the list of countries with the highest current account deficit. 

 

              
                             Data source: International Monetary Fund, April 2013