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CAD dips to 1% on fall in goods trade deficit

Hindustan Times

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December 27, 2023

India's current account deficit (CAD) declined to 1% of gross domestic product (GDP) in the second quarter, down from 1.1% in the preceding quarter, and 3.8% a year ago.

- Shayan Ghosh

The CAD decreased to $8.3 billion in the September quarter of 2023-24 against a deficit of $9.2 billion in the preceding three months, according to the Reserve Bank of India (RBI) data released on Tuesday. In the second quarter of 2022-23, the current account balance recorded a deficit of $30.9 billion.

The decline is largely due to a narrowing of the merchandise trade deficit from $78.3 billion in Q2FY23 to $61 billion in Q2FY24.

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