India's current account deficit narrows to $10.5 billion in October-December

As per the data, the CAD in October-December amounted to 1.2 percent of India's GDP.

India's current account deficit (CAD) narrowed to $10.5 billion in the third quarter of 2023-24, according to data released on March 26 by the Reserve Bank of India (RBI).

As per the data, the CAD in October-December amounted to 1.2 percent of India's GDP.

The CAD in July-September 2023 was $11.4 billion, or 1.3 percent of GDP. In October-December 2022, the deficit stood at $16.8 billion, or 2.0 percent of GDP.

The current account deficit as a percentage of GDP for Q2 of 2023-24 underwent an upward revision to 1.3 percent from 1.0 percent earlier due to an upward adjustment of customs data on merchandise imports, according to the RBI.

Though India's merchandise trade deficit at $71.6 billion during Q3 of FY24 was marginally higher than $71.3 billion during the same period a year ago, services exports grew by 5.2 percent on-year due to rising outbound shipments of software, business and travel services.

"Net services receipts increased both sequentially and from a year ago that helped cushion the current account deficit," the central bank said in a release.

For the April-December period of the ongoing financial year, India’s current account deficit moderated to 1.2 percent of GDP from 2.6 percent in the corresponding period a year ago on the back of a lower merchandise trade deficit.

For 2022-23 as a whole, India's current account deficit stood at $67.0 billion or 2.0 percent of GDP.

India's merchandise trade deficit widened to $18.71 billion in February from $17.49 billion in January, the commerce ministry said on March 15. The trade deficit stood at $16.57 billion in February 2023.

While the trade deficit widened in February, merchandise exports rose by 11.9 percent from the year-ago period to $41.40 billion and imports were up 12.2 percent at $60.11 billion.

For April 2023-February 2024, India's goods trade gap amounted to $225.20 billion, down from $245.94 billion in the first 11 months of 2022-23. This exhibits a decline of 8.43 percent on a year-on-year basis during this period.

India's February trade deficit widens to $18.71 billion, exports at 11-month high

Trade apart, private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $31.4 billion in October-December, an increase of 2.1 percent over their level during the corresponding period a year ago.