CAD widens to $11.5 billion in Q3 on higher trade deficit: RBI data

India's current account deficit (CAD) inched up to $11.5 billion, or 1.1 per cent of GDP, in the December quarter from $10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit, according to RBI data released on Friday.

 

However, the CAD in the December quarter of 2024-25 has moderated from $16.7 billion (1.8 per cent of GDP) in the preceding quarter of the fiscal year. 

"India's current account deficit (CAD) increased to US$ 11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from US$ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from US$ 16.7 billion (1.8 per cent of GDP) in Q2:2024-25.2," said the RBI's data on Developments in India's Balance of Payments. 

Merchandise trade deficit increased to $79.2 billion in the October-December period of 2024-25 from $71.6 billion in year-ago period. 

The CAD widened to $37.0 billion (1.3 per cent of GDP) during April-December 2024 from $30.6 billion (1.1 per cent of GDP) during the corresponding period of last year, primarily on account of a higher merchandise trade deficit, the Reserve Bank of India (RBI) said.