Key Points
India's current account deficit is expected to improve in FY24 but may not slip below 2% of the country's gross domestic product (GDP), an ET poll showed...
The median forecast of 14 economists pegged the current deficit at 2% of GDP in FY24, helped by softening global commodity prices and strengthening of services exports..
The current account deficit for FY23 is expected at 2.5% of GDP, over double the 1.2% of GDP in the preceding year...
"We see CAD easing from here on, led by incrementally improving trade deficit amid receding commodity prices, especially for oil," said Madhavi Arora, lead economist, Emkay Global..
The $132.94 billion services trade surplus for April-February FY23 had helped keep the overall trade deficit contained despite a 43% jump in the merchandise trade deficit to $247.5 billion during April-February FY23 from $172.5 billion in the previous year...
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