India’s Q1FY25 Current Account Deficit (CAD) Increases to $9.7 Billion

• India’s CAD widened to $9.7 billion in Q1 FY25 from $8.9 billion in the previous year.
• The increase was primarily due to a rise in the merchandise trade deficit to $65.1 billion in Q12024-25 from $56.7 billion in Q12023-24.
• Net services receipts rose to $39.7 billion in Q12024-25 from $35.1 billion.
• Private transfer receipts rose to $29.5 billion in Q12024-25 from $27.1 billion.
• Net foreign direct investment inflows climbed to $6.3 billion in Q1FY25 from $4.7 billion.
• Bank of Baroda’s chief economist, Mandan Sabnavis, predicts a deficit of around 1.5% for the year.