Icra On Current Account Deficit

Commerce and Industry Minister Piyush Goyal on Thursday said the government is monitoring the present situation and several steps are under consideration to contain the widening of current account deficit (CAD). India's CAD rose to USD 13.2 billion, or 1.3 per cent of GDP, in the December quarter from USD 11.3 billion in the year-ago period, mainly due to a wider trade gap caused by a decline in exports to the US, according to RBI data released on March 2. However, the CAD moderated to USD 30.1 billion (1 per cent of GDP) in April-December 2025 from USD 36.6 billion (1.3 per cent of GDP) in the same period a year ago. A CAD occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period. "We are monitoring the situation. All the various arms of the government are working as a team. Several steps are under consideration. The situation globally is quite challenging but we

India's current account deficit (CAD) will widen to 5 per cent of the GDP in the September quarter due to higher merchandise trade deficit, domestic ratings agency Icra said. The trade deficit has doubled to USD 28.7 billion for August due to a 36.8 per cent expansion in imports and a 1.2 per cent decline in export earnings. "The current account deficit (CAD) is projected to widen to an all-time high of USD 41-43 billion in Q2 FY23 from the USD 30 billion expected in Q1 FY23. It is expected to widen to 5 per cent of GDP in Q2 FY23, the second highest level since Q3FY12," it said in a note. For the first two months of the quarter, the monthly average trade deficit has trended higher at USD 29.3 billion as against USD 23.5 billion in the June quarter, driven by strong domestic demand which led to a surge in the imports while exports remained subdued amid international slowdown fears, Icra said. CAD will moderate to 2.7 per cent of GDP in the second half of the fiscal, benefitting fro

The CAD is one of the most critical factors that dictate macro stability