India's CAD Widens to USD 11.5 Billion in Q3

Mumbai, Mar 28 (PTI) India's current account deficit (CAD) inched up to USD 11.5 billion, or 1.1 per cent of GDP, in the December quarter from USD 10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit, according to RBI data released on Friday.

However, the CAD in the December quarter of 2024-25 has moderated from USD 16.7 billion (1.8 per cent of GDP) in the preceding quarter of the fiscal year.

"India's current account deficit (CAD) increased to US$ 11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from US$ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from US$ 16.7 billion (1.8 per cent of GDP) in Q2:2024-25.2," said the RBI's data on Developments in India's Balance of Payments.

Merchandise trade deficit increased to USD 79.2 billion in the October-December period of 2024-25 from USD 71.6 billion in year-ago period.

The CAD widened to USD 37.0 billion (1.3 per cent of GDP) during April-December 2024 from USD 30.6 billion (1.1 per cent of GDP) during the corresponding period of last year, primarily on account of a higher merchandise trade deficit, the Reserve Bank of India (RBI) said.