OPEN APP
Home / News / India /  India reports CAD of 1.2% of GDP in FY22 on widening trade deficit
Listen to this article

MUMBAI : India witnessed a current account deficit of 1.2% of GDP in 2021-22 against a surplus of 0.9% in FY2020-21 due to a wider trade deficit, the Reserve Bank said on Wednesday.

For the January-March 2022 quarter, the CAD narrowed on a sequential basis to $13.4 billion or 1.5% of GDP against $22.2 billion or 2.6% of GDP in the December 2021 quarter.

Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period.

The trade deficit widened to $189.5 billion in FY22 from $102.2 billion a year ago, which resulted in slippage in the number which is considered a key representation of a country's external strength, the RBI said.

The Balance of Payments data suggested that goods imports stood at $618.6 billion in FY22 as against $398.5 billion in the year-ago period, leading to the widening of the trade deficit.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout