CAD to come in at 9-year high in first quarter of FY23: Ind-Ra

Merchandise exports likely to slow down and come in at $104.2 bn in second quarter of the year

The country’s current account deficit (CAD) may have widened to a nine-year or 36-quarter high of 3.4 per cent of the gross domestic product (GDP) in the first quarter of this fiscal year against a surplus of 0.9 per cent a year ago, India Ratings (Ind-Ra) said on Friday.

Early signs showed that the deficit may remain elevated in the second quarter, too, as  exports growth slowed, crude prices remained elevated and the rupee depreciated against the dollar.

Before April-June of 2022-23, CAD was higher at 4.7 per cent of GDP in the first quarter of 2013-14.

In terms of