Current account deficit falls to 1.1% at $11.5 billion in Q3

THE current account deficit (CAD), the difference between exports and import values, has narrowed to 1.1% of GDP or $11.5 billion in the third quarter of current fiscal (FY25) as against 1.8% in Q2, boosted by higher earnings from services exports, as per the RBI data.

- BENN KOCHUVEEDAN @ Mumbai

In absolute terms, CAD at $11.5 billion in Q3 is higher than the deficit of $10.4 billion in Q3FY24. Goods imports grew 6% in Q3 to $186.7 billion, but a pick in demand helped exports rise to $109 billion and bring down goods trade deficit. The services trade balance helped bring down the deficit