Current account deficit may fall in Dec quarter as net exports ease

In the September quarter, CAD touched a nine-year high at 4.4 per cent from 2.2 per cent in the June quarter as the negative net exports shot up to $50.3 billion from $36.3 billion

India’s current account deficit (CAD) may reduce in the December quarter as pressure from negative net exports eased during the period to $35.5 billion from $50.3 billion between July and September.

India’s high merchandise trade deficit cancels out the services trade surplus to generate a negative overall trade balance known as net exports. A high negative net exports becomes a drag on economic growth, apart from leading to higher current account deficit. CAD factors in remittances by Indians employed overseas, along with net exports.

In the September quarter, CAD touched a nine-year high at 4.4 per cent from 2.2 per