New Delhi: The current account deficit (CAD) fell sharply in the January-March quarter of FY2023. According to the Reserve Bank of India, the country recorded a current account deficit of $1.3 billion in the last quarter. CAD was $17.9 billion in April-June 2022, $30.9 billion in July-September 2022, and $16.8 billion in October-December 2022.
The total current account deficit for FY 2022-23 is $67 billion. The current account deficit stood at $38.7 billion in the 2021-22 financial year. RBI attributed the continuous fall in CAD to the narrowing of the trade deficit. The trade deficit had narrowed to $52.6 billion in January-March 2023 from $71.3 billion in October-December 2022. Falling crude oil prices are helping the country reduce its trade deficit.
Crude oil price was $85.8 per barrel in October-December 2022 and $80.6 in the last quarter. The fall in crude prices has led to a decline in import value as imports account for 80 percent of domestic crude consumption. Moreover, India has a services trade surplus of $39.1 billion in January-March 2023.
2023-06-27 20:46:00
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