ICRA comment on the Current Account Deficit (CAD) I Ms. Aditi Nayar

“India’s current account deficit came in well below our expectation for Q2 FY2025, providing some solace in light of the sharp weakening in the INR seen recently. Looking ahead, the initial estimate of a record-high trade deficit in November 2024 could well bloat the current account deficit to 2.5-2.7% of GDP in the current quarter. For FY2025 as a whole, the current account deficit may print around 1.1-1.2% of GDP.”