Current account deficit likely to narrow in 2023: RBI's January bulletin

India will be $3.7-trillion economy in 2023: RBI's January bulletin

Lead indicators suggest that domestic current account deficit (CAD) is likely to reduce in 2023, while macro-economic stability has received a boost from inflation being brought back to the official tolerance band, according to the Reserve Bank of India’s (RBI’s) January 2023 Bulletin.

“With the merchandise trade deficit reaching an all-time high of $83.5 billion in a quarter, and a rise in net outgo from the income account, the current account deficit increased to 4.4 per cent of GDP in Q2FY23,” the State of the Economy article in the Bulletin said.

“It is noteworthy, however, that the CAD