The current in the direction of intrinsic diffusion increases, as the potential barrier decreases. I'm okay with that, but I feel that the dip in potential barrier has nothing to do with the width of the depletion region.
2 Answers
The absence of free carriers in the depletion region (DR) produces charge separation. This is because the n-type material in the DR contains positively charged donor dopant atoms with no electrons to neutralize their charge and the p-type material in the DR contains negatively charged acceptor dopant atoms with no holes to neutralize their charge. This separation of positive charge to the n-type part of the DR and negative charge to the p-type part of the DR creates an electric field in the DR. The line integral of this electric field (in volts) tells you the potential energy (in electron-volts) that an electron or hole gains or loses in passing from one side of the region to the other. So to decrease the barrier you need to reduce the charge separation or in other words make the DR smaller.
The potential drop across the junction is directly proportional to the width of deplition region.
http://hyperphysics.phy-astr.gsu.edu/hbase/Solids/pnjun.html