India's current account deficit widened in the fourth quarter of 2023, as reported by the latest data released on 26 March 2024. The country's current account balance stood at -10.5 billion USD during this period, compared to the previous quarter's figure of -8.3 billion USD. This represents a significant increase in the deficit, indicating a larger shortfall in India's foreign trade and investment transactions during the last quarter of 2023.
The widening current account deficit may raise concerns about India's external sector stability and its ability to finance the gap. Analysts will closely monitor the impact of this development on the country's currency exchange rates and overall economic outlook. As global trade dynamics continue to evolve, policymakers in India may need to implement measures to address the growing current account deficit and maintain a balance in international transactions.
