SEBI Reg. Investment Advisor

Download App
Help Center Subscribe
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. CAD likely to widen to $10-12 billion in Q4FY18 due to higher trade deficit: ICRA

CAD likely to widen to $10-12 billion in Q4FY18 due to higher trade deficit: ICRA

23 Mar 2018 Evaluate

The credit ratings agency, ICRA in its latest report has stated that India’s current account deficit (CAD) is likely to widen to $10-12 billion in the fourth quarter of the fiscal year 2017-18 (FY18), as against $3.4 billion in the same period of the previous fiscal year. It said CAD may increase on the back of higher merchandise trade deficit and added that the services trade surplus is expected to improve. Besides, the CAD had increased to $13.5 billion or 2% of the gross domestic product (GDP) in Q3FY18 as well, against $8 billion, or 1.4% of GDP in the same period a year-ago.

For the full financial year 2017-18, the rating agency expects the CAD to increase to $46-48 billion, or 1.8% of GDP, from $15.2 billion, or 0.7% of GDP in financial year 2016-17. As per the report, the country’s merchandise exports and imports are likely to expand by 8-10% in FY19 to $335-340 billion and $505-510 billion, respectively, resulting in a widening of the merchandise trade deficit to $170-175 billion, unless commodity prices recede significantly.

The report noted, given other macroeconomic fundamentals, the level of current account deficit is unlikely to pose a major macroeconomic risk. However, report said that the extent of capital flows would determine the sentiment towards the rupee and the level of foreign exchange reserves. It also said that the pace of economic growth, the strength of the recovery in corporate earnings, the magnitude of IPOs, the result of resolution of non-performing assets (NPAs) and the bank recapitalisation programme would impact FII interest in the domestic equity market in the pre-election year. ICRA said that presently it appears unlikely that aggregate FII inflows into debt and equity would record a rise in FY19 from the expected three-year high level of $21-23 billion in FY18.


Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: