India's current-account deficit of US$21.8 billion in the fiscal quarter that ended in June came in below estimates. The trade component was particularly encouraging as taxes on gold imports began to take effect. "Concerns over deficit financing are alleviating due to improvement in the trade deficit in recent months and steps by the central bank to boost dollar inflows," said Tirthankar Patnaik, a strategist at Religare Capital Markets in Mumbai.

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