New Delhi: The current account deficit (CAD) of India may widen to 4.4% of GDP at $36 billion in the second quarter. It was at $9.7 billion or 1.3% in the year-ago period. Falling exports and high crude prices are the reason for this. A report published by India Ratings revealed this.
In the first quarter of this fiscal the deficit was $23.9 billion or 2.8%. The merchandise exports may slip to an eight-quarter low of $88.2 billion in Q3FY23 which would be 17.4% lower than Q3FY22. Overall, merchandise trade deficit will rise to a fresh high of $83.7 billion in Q3, which is 38.9% higher than Q3FY22.
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Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period. Trade deficit is the difference between imports and exports of the country.
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