India’s January-March current account deficit narrows as trade gap narrows – RBI

India’s current account deficit narrowed sharply in the January-March quarter, mainly due to the moderation of the trade gap and increased services exports, the Bank said on Wednesday.

The current account deficit reached $1.3 billion, or 0.2% of GDP, in the fourth quarter of fiscal 2022/23, compared with a revised deficit of $16.8 billion, or 2% of GDP, in the previous quarter from October to December .

The deficit was $13.4 billion in the same quarter a year earlier, the statement said.

“The consecutive declines in CAD in Q4:2022-23 were primarily due to a moderating trade deficit to $52.6 billion in Q4:2022-23 from $71.3 billion in Q3:2022-23, coupled with strong services exports. RBI said in the statement.

A Reuters survey of 22 economists showed the current account balance likely posted a surplus of $3.3 billion, or 0.4% of gross domestic product (GDP) in the March quarter.

Forecasts vary widely, ranging from a $5.0 billion deficit to a $7.8 billion surplus.

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