 "trade, tariff")
Even before United States (US) President Donald Trump took charge in his second stint, India saw its foreign exchange reserves deplete around $38 billion in the third quarter of 2024-25 (Q3FY25). It was against an addition of $19 billion in the second quarter. This, despite the current account deficit (CAD) moderating to $11.5 billion from $ 16.7 billion during the period.
This happened because there was capital outflow of around $27 billion on a net basis between October-December against a net inflow of $36 billion during July-September in FY25.
India, being a net importer of goods, has a CAD, which
