The Reserve Bank of India (RBI) in its latest data on Developments in India’s Balance of Payments has showed that India’s current account deficit (CAD) inched up to $11.5 billion, or 1.1 per cent of Gross Domestic Product (GDP), in the December quarter of fiscal year 2024-25 (FY25) from $10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit.
However, the CAD in the December quarter of 2024-25 has moderated from $16.7 billion (1.8 per cent of GDP) in the preceding quarter of the fiscal year. Merchandise trade deficit increased to $79.2 billion in the October-December period of 2024-25 from $71.6 billion in year-ago period.
The RBI said the CAD widened to $37.0 billion (1.3 per cent of GDP) during April-December 2024 from $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.
