India's CAD in FY 23 may stand at 3–3.2% of GDP, says CEA

India's current account deficit is predicted to be 3% to 3.2% of GDP for FY23, according to Chief Economic Advisor (CEA) V Anantha Nageswaran, as a result of increasing domestic economic activity and a rise in oil import costs. He did emphasize that the country's external sector is still strong.

The current account balance of India showed a deficit of 1.2% of GDP in 2021–22 compared to a surplus of 0.9% in 2020–21. The Reserve Bank of India anticipates that the CAD will narrow in the second half of 2022 after widening marginally in the first half (April to September) (October 2022-March 2023). For FY23, the CAD is projected to represent less than 3% of GDP.

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