CAD may touch nine-year-high in Q1FY23 as net exports soar

India's CAD stood at 1.5% of GDP in the March quarter of FY22 compared to a CAD of 2.6% of GDP in the preceding quarter of FY22


Asit Ranjan Mishra New Delhi
India’s current account deficit (CAD) may hit a nine-year high in the June quarter of FY23 with the net exports ratio touching 5.3 per cent of gross domestic product (GDP) in the first quarter.

A part of the GDP figures, the net exports data — which is usually negative for India — captures the difference between exports and imports of both goods and services, while the CAD data, released by the Reserve Bank of India (RBI), also factors in private transfer receipts. Thus, CAD represents remittances by Indians employed overseas, along with net exports. 

Net exports, which are considered a proxy for CAD, came in highest since the June quarter of 2013, the national account data released on Wednesday for

First Published: Sep 01 2022 | 9:18 PM IST

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