Reserve Bank of India logo.
Credit: Reuters Photo
Mumbai: India's current account deficit (CAD) inched up to USD 11.5 billion, or 1.1 per cent of GDP, in the December quarter from USD 10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit, according to RBI data released on Friday.
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.
"India's current CAD increased to $11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from $ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from $ 16.7 billion (1.8 per cent of GDP) in Q2:2024-25.2," said the RBI's data on Developments in India's Balance of Payments.
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 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, the RBI added.