The Reserve Bank of India (RBI) in its latest bulleting said that the country’s current account deficit (CAD) may remain within 3 per cent of gross domestic product (GDP) in this fiscal. It was at 1.2 percent in the last fiscal. India’s trade deficit widened to $124.5 bn in the first five months of this fiscal compared to $54 bn a year ago.
The futures prices of crude oil have softened in the last few months, an article in the bulleting titled ‘State of the Economy’ said.
Export of petroleum products has also improved on an annual basis in August, the article said.
Overall exports of goods and services can achieve the target of $750 billion for fiscal 2022-23. In addition, India is strengthening its position in the world in terms of money received by non-resident Indians (NRIs). The country received a record $90 billion in funds from NRIs during the last fiscal, and that is expected to reach a record level in the current fiscal, the article, written by a team led by RBI deputy governor Michael Debabrata Patra, said.
Strong foreign investment buying and foreign direct investment can lead to deficit financing, the article added.
