Mumbai: India’s current account deficit (CAD) slightly widened to $11.5 billion, or 1.1% of GDP, in Q3 FY2025 from $10.4 billion (1.1% of GDP) a year earlier. However, it moderated from $16.7 billion, or 1.8% of GDP, in Q2 FY2025. The merchandise trade deficit rose to $79.2 billion in Q3 FY2025 from $71.6 billion in the same quarter last year.
According to Aditi Nayar, chief economist at ICRA, the deficit was lower than expected. “This amounted to 1.1% of GDP, similar to last year’s levels, also below the 1.8% recorded in Q2 FY2025 and ICRA’s estimate of 1.4% for that quarter.” She added that ICRA expects a current account surplus of around $4-6 billion in Q4 FY2025, supported by a seasonal rise in merchandise exports and a healthy services surplus.
Net services receipts increased to $51.2 billion from $45 billion a year ago, with growth across major categories such as business services and computer services.
According to Aditi Nayar, chief economist at ICRA, the deficit was lower than expected. “This amounted to 1.1% of GDP, similar to last year’s levels, also below the 1.8% recorded in Q2 FY2025 and ICRA’s estimate of 1.4% for that quarter.” She added that ICRA expects a current account surplus of around $4-6 billion in Q4 FY2025, supported by a seasonal rise in merchandise exports and a healthy services surplus.
Net services receipts increased to $51.2 billion from $45 billion a year ago, with growth across major categories such as business services and computer services.
