MUMBAI: India’s present account deficit (CAD) widened to $9.7 billion (1.1% of GDP) within the first quarter (April-June) of the fiscal yr 2024-25, in comparison with $8.9 billion (1% of GDP) in the identical quarter of the earlier yr. This marks a reversal from the present account surplus of $4.6 billion (0.5% of GDP) noticed within the final quarter of 2023-24.
The first motive for the widening CAD is the rise within the merchandise commerce deficit, which rose to $65.1 billion in Q1 2024-25 from $56.7 billion in Q1 2023-24.
