CAD could surge further in Q2FY23

As imports continue to surge, India’s current account deficit (CAD) is likely to be pushed to even higher level in the September 2022 quarter, as per a report in Business Standard. Based on the trends for July 2022 and August 2022, ICRA stated that CAD may rise to an all-time high of USD 41-43 billion in the second quarter of 2022-23, which would be as high as five per cent of GDP. As per the rating agency, CAD likely widened to 3.5 per cent of GDP in the June 2022 quarter. For full fiscal, CAD is estimated to reach an all-time high of USD 120 billion or 3.5 per cent of GDP in 2022-23. However, it will be lower as proportion of GDP than 2012-13 levels of 4.8 per cent, it stated.