Business Standard

India's current account deficit in July-Sept rises sharply to 4.4% of GDP

The net outgo from the primary income account, mainly reflecting payments of investment income, increased to $12 billion from $9.8 billion a year ago

fiscal deficit, growth, revenue, tax, economy

CAD in Q2 FY23 was mainly due to widening of merchandise trade gap to $83.5 billion from $63 billion in the preceding quarter | Illustration: Ajay Mohanty

Abhijit Lele Mumbai
India’s current account deficit (CAD) shot up to an all-time high of $36.4 billion, about 4.4 per cent of the country’s gross domestic product (GDP), in the quarter ended September 2022 (Q2FY23), owing to a widening of the merchandise trade gap.

According to Bloomberg data, the previous highest CAD in absolute terms was $31.8 billion in the quarter ended December 2012 (Q3FY13).

The CAD was $18.2 billion (2.2 per cent of GDP) in the first quarter ended June 2022 (Q1FY23) and $9.7 billion (1.3 per cent of GDP) a year ago (Q2FY22), said the Reserve Bank of India (RBI) in a statement.


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First Published: Dec 29 2022 | 6:07 PM IST

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