India’s current account deficit (CAD) has declined to $10.5 billion in the third quarter of financial year 2023-24. This is equal to 1.2 percent of India’s GDP. This information was given in the press release issued by the Reserve Bank of India (RBI) on Tuesday.
Current account deficit is continuously decreasing
There is a quarter-on-quarter decline in current account deficit in the financial year 2023-24. In July-September it was $11.4 billion or 1.3 percent of GDP. At the same time, in the same period last year i.e. October-December 2022, it was 16.8 billion dollars i.e. 2 percent of the GDP. In the information given by RBI, it was said that due to adjustment of customs data on imported goods, the current account deficit for the second quarter of the financial year 2023-24 has increased from one percent to 1.3 percent. The current account deficit in the April to December quarter stood at 1.2 percent, which was 2.6 percent a year ago.
trade deficit increased
There has been a slight increase in trade deficit in the third quarter of the current financial year. It has increased to $71.6 billion, which was about $71.3 billion a year ago. However, during this period, there has been a growth of 5.2 percent in the export of services. In the press release issued by RBI, it was told that the current account deficit has decreased due to increase in exports of services.
It was reported by the Commerce Ministry that India’s trade deficit is continuously increasing. In February 2024 it was $18.71 billion. In January it was $17.49 billion. Whereas, the trade deficit in February 2023 was $16.57 billion. For April 2023-February 2024, India’s goods trade gap stood at $225.20 billion, down from $245.94 billion in the first 11 months of 2022-23. This shows a decline of 8.43 percent on year-on-year basis during this period.
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