India's CAD may show dip in Q4 as net exports hit 11-quarter high

IDFC First Bank in a recent report said in FY25, it estimates CAD at 1.3 per cent of GDP compared to 0.7 per cent of GDP in FY24

India’s current account deficit (CAD) may dip further in the March quarter of FY24 as pressure from the negative net exports during the January-March period eased to an 11-quarter high.

A part of the gross domestic product (GDP) data, net export— which is usually negative for India — captures the difference between exports and imports of both goods and services, while the CAD data, released by the Reserve Bank of India (RBI), also factors in private transfer receipts.

According to data released by the National Statistical Office (NSO) on Friday, the net exports in nominal terms stood at -0.8 per