CAD will be sustainable, can be financed by normal capital inflows: RBI Guv

The number of unicorns, or new businesses valued at over $1 billion, is rising rapidly

Reserve Bank of India (RBI) Governor Shakt­ikanta Das on Thursday said the current account deficit (CAD) will be sust­ai­nable and may be financed by normal capital inflows.

India’s CAD widened to $23 billion in the third quarter (Q3) of 2021-22 (FY22). This was 2.7 per cent of the country’s gross domestic product (GDP) due to higher trade deficit. CAD was $9.9 billion (1.3 per cent of GDP) in the second quarter of FY22 and $2.2 billion (0.3 per cent of GDP) a year ago (Q3 of 2020-21).

Das in his statement on the June monetary policy review had said optimism about exports