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Informist, Friday, Jun. 6, 2025

--RBI Malhotra: CAD for FY26 to remain well within sustainable levels 

--RBI Malhotra: CAD for FY25 to remain low 

MUMBAI – India's current account deficit for 2024-25 (Apr-Mar) is expected to remain low, with the trade deficit moderating in the March quarter and services exports standing strong, Reserve Bank of India Governor Sanjay Malhotra said Friday. Despite rising geopolitical and trade uncertainties, India's merchandise trade remained robust in April. However, the trade deficit widened dueing the month as growth in imports outpaced exports. 

India's merchandise trade deficit in April rose to $26.42 billion from $19.19 billion a year ago. While exports rose to $38.49 billion from $35.30 billion a year ago, imports surged to $64.91 billion from $54.49 billion. 

Going forward, net services and remittance receipts are expected to remain in surplus, offsetting the widening trade deficit, Malhotra said. The current account deficit for FY26 is projected to remain well within sustainable levels, he said.

India's current account deficit narrowed to $11.46 billion in the December quarter from $16.67 billion in Jul-Sept. On year, the current account deficit was unchanged in Oct-Dec at 1.1% of GDP, down from 1.8% in Oct-Dec.  End

Reported by Gowri Lakshmi

Edited by Avishek Dutta

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