Current account gap stood at 1.1% of GDP in Q3

India’s current account deficit (CAD) rose to $11.5 billion, or 1.1% of GDP, in the October-December quarter of 2024-25, mainly due to a higher trade gap, according to RBI data released on Friday.

This is slightly higher than the $10.4 billion deficit recorded in the same quarter last year.

However, the CAD has reduced compared to the previous quarter, when it was $16.7 billion (1.8% of GDP).


"India's current account deficit (CAD) increased to US$ 11.5 billion (1.1 per cent of GDP) in Q3:2024-25 from US$ 10.4 billion (1.1 per cent of GDP) in Q3:2023-24 but moderated from US$ 16.7 billion (1.8 per cent of GDP) in Q2:2024-25.2," said the RBI's data on Developments in India's Balance of Payments.

Merchandise trade deficit increased to USD 79.2 billion in the October-December period of 2024-25 from USD 71.6 billion in year-ago period.

"The CAD widened to USD 37.0 billion (1.3 per cent of GDP) during April-December 2024 from USD 30.6 billion (1.1 per cent of GDP) during the corresponding period of last year, primarily on account of a higher merchandise trade deficit," the Reserve Bank of India (RBI) said.