India's current account deficit narrowed sharply in the January to March quarter, mainly on the back of a moderation in the trade gap and an increase in services exports, the Reserve Bank of India said on Wednesday.

The current account deficit stood at $1.3 billion or 0.2% of GDP in the fourth quarter of fiscal year 2022/23, compared with a revised deficit of $16.8 billion or 2% of GDP in the preceding October-December quarter.

The deficit had stood at $13.4 billion in the same quarter a year ago, the release showed.

(Reporting by Swati Bhat and Siddhi Nayak; editing by Sudipto Ganguly)