India's CAD may have breached 3% of GDP in Q1 on surge in imports

Analysts peg full-year figure at $120 bn, but say it will be lower as proportion of GDP than FY13 levels

India’s current account deficit (CAD) is expected to more than double sequentially to over $30 billion in the first quarter of financial year 2022-23 (Q1FY23) to rise above 3 per cent of gross domestic product (GDP) from $13.4 billion, or 1.5 per cent of GDP, in the previous quarter.

The gap between exports and imports has widened primarily because of the sharp rise in commodity prices in Q1 as a result of the Russia-Ukraine war and supply chain disruptions. The Reserve Bank of India (RBI) is expected to release data on the current account balance and balance of payments by