India’s Current Account Deficit Decreases to 1.2% of GDP in October-December Quarter, Indicating a Robust Economy
India’s Current Account Deficit (CAD) dropped to $10.5 billion in the October-December quarter of 2023-24, a decrease from the previous year, according to figures released by the RBI.
The decline in CAD shows an improvement in India’s economic fundamentals, with merchandise trade deficit slightly higher and services exports growing by 5.2 percent.
Foreign direct investment saw a net inflow of $4.2 billion, while foreign portfolio investment recorded a net inflow of $12.0 billion in Q3:2023-24, higher than the previous year.
Other highlights include an increase in non-resident deposits and an accretion of foreign exchange reserves. India’s current account deficit decreased to 1.2 percent of GDP during April-December 2023 compared to the previous year, with higher net invisibles receipts.
