CAD likely to moderate in H2 FY23, says RBI Governor

Mumbai: Reserve Bank Governor Shaktikanta Das on Wednesday said Current Account Deficit (CAD) is expected to moderate in second half of 2022-23 from 3.3 per cent of GDP in April-September mainly due to moderation in imports.

CAD, a key indicator of the external sector, had widened to 3.3 per cent of GDP in first half of 2022-23 from 0.2 per cent in the comparable period of



2021-22 on the back of a sharp increase in the merchandise trade deficit.

"The situation has shown improvement in Q3:2022-23 as imports moderated in the wake of lower commodity prices, resulting in narrowing of the merchandise trade deficit," the Governor said while announcing the last bi-monthly monetary policy of current fiscal year.