India's current account deficit (CAD) as a percentage of GDP widened slightly during the third quarter of 2024, according to the latest official data released on December 27, 2024. The CAD stood at -1.20% of GDP, compared to the previous quarter's indicator of -1.10%. This quarter-over-quarter increase indicates a marginal rise in the deficit situation of India's current account.
The data suggest that while India's economy continues to strive towards recovery and growth, external imbalances have widened, albeit modestly. Twenty-three basis points reflect the increasing import bills or a disparity in the trade and services balance for the quarter. India has been navigating a complex economic environment, compounded by global trade dynamics and inflationary pressures.
Economists remain vigilant about India's external position, particularly in light of fluctuating global demand, potential policy shifts, and domestic economic policies. As India steps into the new year, maintaining a stable current account and bolstering its economic objectives will be critical to sustaining momentum and ensuring balanced financial health. The updated figures provide a nuanced view for policymakers and stakeholders focusing on reinforcing India's economic resilience./body
