India's current account deficit (CAD) improved, narrowing to 1% of GDP in the second quarter of the fiscal year 2023-24, down from 1.1% in the previous quarter.
The Reserve Bank of India (RBI) reported a decline in CAD to $8.3 billion, compared to $9.2 billion in the preceding three months. The improvement is attributed to a reduction in the merchandise trade deficit.
Services exports, particularly software, business, and travel services, contributed to the positive trend. Despite expectations of a wider deficit in the December quarter, the FY24 CAD is anticipated to range between 1.5-1.6% of GDP.