Widening deficit: Worries persist over FY24 current account balance

CAD may be better than expected in FY23, but India won't be completely out of the woods next year, says official

Arup Roychoudhury New Delhi
Economic growth, GDP

Meanwhile, The International Monetary Fund expects global growth to slow from 3.2 per cent in 2022 to 2.9 per cent in 2023

With India expected to be among the fastest growing major economies in financial year 2023-24 (FY24), officials in the Union government are not as worried about most major economic indicators like gross domestic product (GDP), inflation, and the fiscal deficit.
However, the current account balance is still a cause for concern for some policymakers, given how uncertain the trade component is expected to be due to recession in many western developed economies and slowdown in China.
This concern could be reflected in public statements of senior officials and in future monthly economic reports as well, and comes in spite of Reserve Bank of India (RBI) Governor Shaktikanta Das’ assurances that the current account deficit (CAD) is “eminently manageable”. A deficit indicates that the country imported more goods and services than it exported.

Also Read

Current account deficit widens to 2.8% of GDP in Q1; trade deficit jumps

India's CAD likely to shoot up as net exports hit nine-year low

CAD may touch nine-year-high in Q1FY23 as net exports soar

India's CAD pegged at 3-3.2% of GDP in FY23: CEA V Anantha Nageswaran

GDP growth may have beaten MPC's estimate of 6.3% in Q2: Economists

India's GDP likely to grow at 6.2% in FY24, says Morgan Stanley

India writes to WTO against Carbon border tax; here's all you need to know

Trade watch: Low demand for goods from China, others sinks imports

Govt looks to tap section of kirana stores to expand GST base: Report

Trusted fact checkers: Govt to work with tech majors to create a framework

First Published: Feb 16 2023 | 11:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to