After 13-quarter high in Q3, current account deficit may have eased in Q4

Net exports, which are considered a proxy for current account deficit, declined 2.9% of the GDP in the March quarter

India’s current account deficit (CAD) is expected to have eased in the January-March quarter of FY22 after touching a 13-quarter high in October-December 2021.

Net exports, which are considered a proxy for CAD, declined 2.9 per cent of the GDP in the March quarter as compared to a 3.9 per cent decline in the December quarter, according to the GDP data released on Tuesday.

India’s net exports are always negative as imports outpace exports. “On an average, net exports drag down India’s GDP growth by 3 percentage points. In FY22, however, it reduced GDP growth by 5 percentage points. But