India’s current account deficit widened by less than expected to USD 23.9 bn (i.e., 2.8% of GDP) in Q1 FY23 from USD 13.4 bn (1.5% of GDP) in Q4 FY22.
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Sep 29, 2022
India Q1 FY23 BoP: A short reprieve
With ongoing strength in domestic recovery, pent-up demand for both goods and services and FYTD (Apr-Aug-22) high run rate of trade deficit, we continue to hold our FY23 CAD estimate of USD 130 bn, while attaching the possibility of a mild downside risk. Incorporating the stronger than anticipated jump in Banking capital in Q1, we revise our FY23 BoP deficit lower by USD 10 bn to USD 50 bn.