India’s Current Account Deficit Narrows To 1% Of GDP In Q2

The current account deficit continued to narrow in the July–September quarter amid a lower merchandise trade deficit coupled with robust service exports.

"Following the expansion in the merchandise trade deficit in October 2023, we expect the current account deficit for the ongoing quarter to widen appreciably, to around $18-20 billion," said Aditi Nayar, chief economist at ICRA.

Nevertheless, for the full year, Nayar forecasted the current account deficit in the range of 1.5-1.6% of GDP, unless commodity prices chart a sharp rebound.