India's Current Account Deficit Reaches Record Level; 4.4% of GDP

India's Current Account Deficit (CAD) ie Current Account Deficit has reached its highest-ever level in the September quarter. According to the Reserve Bank of India (RBI) data released on Thursday (December 29), India's current account deficit widened to $36.4 billion in the July-September (second quarter), its highest-ever level.
This is almost double the current account deficit of $ 18.2 billion in its previous quarter (April-June 2022). The previous record for the current account deficit was $31.77 billion, recorded in the third quarter of the fiscal year 2013. At the same time, in the entire financial year 2022, the current account deficit of the country was 38.77 billion dollars.
The country's current account deficit stood at $54.5 billion in the first half of the current financial year. This is about 15% more than the current account deficit of $ 3.1 billion in the same period of the last financial year. Talking about the percentage of Gross Domestic Product (GDP), the country's CAD increased to 4.4% of GDP in the September quarter.
This figure was earlier 2.2% in the April-June quarter. A year ago in the second quarter of 2021-22, it was 1.3% of GDP ($ 9.7 billion). The current account deficit stood at 3.3% of GDP in the first half, up from 0.2% in the previous fiscal period.
RBI said in the statement, 'One of the main reasons for the increase in current account deficit in the July-September quarter has been the high level of trade deficit. The trade deficit in goods was $ 63 billion in the first quarter of the current financial year, which has increased to $ 83.5 billion in the second quarter.