|
India's CAD projected at 1 pc of GDP for FY 2025
India's current account deficit is projected to stay around 1% of GDP in fiscal 2025, supported by strong financial inflows and a steady services trade surplus. Despite pressures from rising merchandise trade deficits, healthy remittances and increased foreign portfolio investments have maintained stability.
India's current account deficit (CAD) is to remain in a safe zone at approximately 1 per cent of GDP for fiscal 2025, up from 0.7 per cent in the previous year, according to a report by CRISIL.
While geopolitical risks will require close monitoring, the strong financial inflows and a steady services trade surplus are expected to provide stability.
India's current account deficit (CAD) remained largely stable at USD 11.2 billion, or 1.2 per cent of GDP, in the second quarter (Q2) of fiscal 2025, compared with USD 11.3 billion (1.3 per cent of GDP) in the same period last year.
However, sequentially, the CAD widened slightly from USD 10.2 billion (1.1 per cent of GDP) in the first quarter, as reported by the Reserve Bank of India.
Despite pressures from a rising merchandise trade deficit, strong services exports and healthy remittances helped keep the CAD manageable.
|
