Page 2 - Current Account Deficit

India to receive record remittances but experts worry CAD will still widen

Of $90 billion remittances that India is expected to receive in 2022, only $27.4 billion has come in the first half of the year

India's Q3 current account deficit likely rose on widening trade gap: Poll

A revival in domestic demand in Asia's third-largest economy since the Covid-19 pandemic has also compounded the shortfall through higher imports

Bangladesh's current account deficit widens in Oct as imports surge: Report

Bangladesh's current account deficit further widened in October as imports continued to increase in comparison to the combined receipts from exports and remittances

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

CAD in Q1 of 2013 was 4.9 per cent of GDP, while net exports stood at 5.93 per cent of GDP

Slower annual economic growth will be good for India, for now: Economists

India's annual economic growth is forecast to slow to about 6% for a few years, according to economists from Goldman Sachs Group Inc. and Barclays Plc.. And they say that's not such a bad thing

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

'India's annual import cover comfortable; IMF does not consider external sector to be in a zone of vulnerability'

Current account deficit likely to be lower at 3% this fiscal: SBI report

State Bank of India has pencilled in lower current account deficit at 3 per cent for this fiscal as against the minimum consensus of 3.5 per cent, citing rising software exports, remittances and a likely USD 5-billion jump in forex reserves via swap deals. Every USD 10 increase in crude prices impacts the Current Account Deficit (CAD) to the tune of 40 basis points while the same on fuel inflation is 50 bps and also results in 23 bps decline in growth, according to Soumyakanti Ghosh, the chief economic advisor at SBI. CAD has a counter cyclical shock absorber, he said in a report on Thursday. Exchange rate is the major contributor to software exports growth and 40 per cent of its variation is explained by exchange rates. "If we translated these numbers in actual terms, every Re 1 fall against the dollar leads to an increase in software exports by USD 250 million". This, along with an expected USD 5 billion-forex reserve accrual by way of swap transactions and higher remittances, wi

A healthy debate: The case for and against interest rate hike

Having raised policy rates to about 6 per cent, does India's Monetary Policy Committee need to do more? And, if so, is more front-loading warranted?

Political currency or divine help?

Economic debates should be informed. Changing the currency notes or printing images of Lord Ganesh and Goddess Lakshmi on them will not help

Current account imbalance hits India harder than EM peers, shows data

India's current account deficit is projected at 3.5 per cent for 2022, says IMF World Economic Outlook report

Rupee fluctuations not a factor for MPC's consideration, says RBI

'Net LAF continues to be in surplus for the past two years, except for 2-3 days when because of SLF for the primary dealers it became deficit'

Inflation, external pressure priority over growth: Finance ministry

The MPC also cut its FY23 GDP growth forecast to 7 per cent from 7.2 per cent, with Governor Shaktikanta Das acknowledging that there were downside risks to economic growth

RBI expects current account deficit to come under 3% of GDP in FY23

The Reserve Bank expects the current account deficit to be under 3 per cent of GDP in FY23, Deputy Governor Michael Patra said on Friday. The CAD will "modestly widen" in the first half of the fiscal year and narrow in the second half, Patra told reporters in the customary post-policy press conference. "Overall, we expect the current account deficit to be under 3 per cent of GDP (in FY23)," Patra said. The comments come a day after official data released by the Reserve Bank of India (RBI) showed that the CAD widened in the first quarter of the fiscal to 2.8 per cent of GDP. In FY22, the CAD had stood at 1.2 per cent of the GDP. Patra said there are factors beyond the widening trade deficit as the exports are getting hit due to adverse economic developments in the advanced economies, and pointed out certain factors helping the CAD lately. He said the oil prices have moved south, which will lower the import bill, and there has been a 23 per cent growth in petroleum exports, courtes

Centre to put curbs on imports of some items to arrest rupee's fall: Report

The authorities have already started to track the imports of select products, including electronics. However, a final decision is still to be made

India's current account deficit widens in April-June quarter: RBI

In absolute terms, the current account deficit (CAD) stood at $23.90 billion in the first quarter of fiscal year 2022/23, its highest since the December quarter of 2012

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

Services exports, remittances show firm momentum in Q1

India's current account deficit widens to 2.8% of GDP in Q1FY23: RBI

India's current account deficit, a key indicator of the balance of payment position, widened to 2.8 per cent of GDP at USD 23.9 billion in the first quarter of the current financial year, mainly on account of a higher trade deficit. As per the data released by the Reserve Bank on India's Balance of Payments during the First Quarter (April-June) of 2022-23, the current account balance recorded a deficit of USD 23.9 billion (2.8 per cent of GDP) in the first quarter, up from USD 13.4 billion (1.5 per cent of GDP) in January-March period of the last fiscal. India's current account surplus stood at USD 6.6 billion, equivalent to 0.9 per cent of GDP in the first quarter (April-June) of 2021-22. "Underlying the current account deficit in Q1:2022-23 was the widening of the merchandise trade deficit to USD 68.6 billion from USD 54.5 billion in Q4:2021-22 and an increase in net outgo of investment income payments," the RBI said. It also said net services receipts increased, both sequentiall

India's CAD may have breached 3% of GDP in Q1 on surge in imports

Analysts peg full-year figure at $120 bn, but say it will be lower as proportion of GDP than FY13 levels

Even at $100 bn, FDI may not be sufficient to finance ballooning CAD

CAD is expected to hit a decadal high of 3.8% of GDP, or $130.5 bn; to make matters worse, FDI inflows expected are on gross basis and net inflows would be much lower than $100 bn

CAD may jump over 5% of GDP in Q2FY23, relief likely in the next fiscal

The current account deficit may have widened to 3.4% of the gross domestic product in the first quarter against a surplus of 0.9% a year ago