CAD may reach manageable levels in second half of FY23: Economic Survey

This could be owing to cheaper crude oil, resilient net services exports and buoyant inward remittances

Even as India’s current account deficit (CAD) widened to 3.3 per cent of gross domestic product (GDP) during the first half of the fiscal year, cheaper crude oil, resilient net services exports and buoyant inward remittances may bring the CAD within ‘sustainable limits’ during the remaining period of FY23, the Economic Survey said.

The elevated CAD during April-September was the result of a higher merchandise trade deficit of $83.5 billion, triggered by a sharp rise in oil prices.

The Survey said that the position of the current account balance (CAB) for select countries shows that India’s CAD is modest and