📰 News Alert...

🔖 Title: India's Current Account Deficit Narrows to $2.4 Billion in Q1 2025 Despite Trade Gap

🗓️ Published: 2025-09-02T05:00:36.000Z

📄 Summary: India’s current account deficit (CAD) narrowed to $2.4 billion in the April-June quarter of 2025, driven by strong service exports, particularly in IT and business services, and robust remittance inflows. This improvement comes despite a wider merchandise trade deficit of $68.5 billion. Foreign direct investment (FDI) inflows softened during this period, while portfolio investment flows strengthened. Analysts caution that rising tariffs could pose risks, potentially pushing the CAD to 1.2% or higher of GDP if challenges persist.