India's CAD pegged at 3-3.2% of GDP in FY23: CEA V Anantha Nageswaran

'India's annual import cover comfortable; IMF does not consider external sector to be in a zone of vulnerability'

With rising domestic economic activity and an uptick in oil import bills, India’s current account deficit is expected to be 3-3.2 per cent of gross domestic product (GDP) for FY23, according to Chief Economic Advisor (CEA) V Anantha Nageswaran. But he stressed the country’s external sector remains robust.

India’s current account balance recorded a deficit of 1.2 per cent of GDP in 2021-22, against a surplus of 0.9 per cent in 2020-21.

The Reserve Bank of India expects CAD to have widened modestly in the first half (April-September 2022) but shrink in the second half (October 2022-March 2023). Overall, CAD