Public TV EnglishPublic TV English
  • Latest
  • States
    • Karnataka
      • Bengaluru
    • Andhra Pradesh
    • Kerala
    • Tamilnadu
    • Telangana
  • National
  • Politics
  • Entertainment
    • Bollywood
  • Lifestyle
  • Food
    • Veg
    • Non Veg
  • Technology
  • Fashion
  • World
Reading: India’s CAD likely to exceed 2 pc of GDP in Q3 FY25 amid gold import surge: Report
Share
Font ResizerAa
Public TV EnglishPublic TV English
Font ResizerAa
  • Latest
  • States
  • National
  • Politics
  • Entertainment
  • Lifestyle
  • Food
  • Technology
  • Fashion
  • World
Search
  • Latest
  • States
    • Karnataka
    • Andhra Pradesh
    • Kerala
    • Tamilnadu
    • Telangana
  • National
  • Politics
  • Entertainment
    • Bollywood
  • Lifestyle
  • Food
    • Veg
    • Non Veg
  • Technology
  • Fashion
  • World
Follow US
BusinessLatestMain Post

India’s CAD likely to exceed 2 pc of GDP in Q3 FY25 amid gold import surge: Report

Public TV English
Public TV English December 28, 2024
Share
3 Min Read
SHARE

NEW DELHI: India’s Current Account Deficit (CAD) is expected to rise above 2 per cent of GDP in the third quarter of FY25, driven by a surge in gold imports, according to a report by Bank of Baroda. However, resilient services exports and remittance inflows are likely to cushion the overall impact, keeping the CAD for FY25 within a manageable range of 1.2 per cent-1.5 per cent of GDP.

India’s CAD narrowed slightly to 1.2 per cent of GDP in Q2 FY25, compared to 1.3 per cent in the same period last year. Higher CAD is also because of increased trade deficit. Merchandise trade deficit widened to $75.3 billion in Q2 FY25 from $64.5 billion in Q2 FY24. The increase was largely attributed to higher non-oil imports, with gold imports rising by $5 billion year-on-year.

In contrast, the services sector emerged as a bright spot, with net services balance increasing to $44.5 billion in Q2 FY25, up from $39.9 billion in the previous year. Software and business services exports were particularly strong, while private remittances grew to $29.3 billion, further supporting CAD containment.

On the capital account front, India recorded a surplus of $11.9 billion in Q2 FY25, compared to $10.3 billion in Q2 FY24. The sharp rise in Foreign Portfolio Investment (FPI) inflows, which surged to $19.9 billion from $4.9 billion last year, played a key role.

Non-resident Indian (NRI) deposits and External Commercial Borrowings (ECBs) also contributed positively, offsetting increased Foreign Direct Investment (FDI) outflows. Overall, the balance of payments (BoP) recorded a significant surplus of $18.6 billion in Q2 FY25, up from $2.5 billion in the same period last year, supported by robust capital inflows.

The report highlighted that sluggish FPI inflows in recent months, coupled with a stronger US dollar, are likely to exert pressure on the Indian rupee. Bank of Baroda expects the rupee to trade in a range of 84-85.5/USD in the near term. The surge in November 2024’s trade deficit, primarily driven by gold imports, is seen as a one-off event. However, the Bank of Baroda flagged potential risks, including the possibility of protectionist trade policies under the incoming US administration.

Despite these concerns, resilient services exports and remittance inflows are expected to keep CAD levels manageable for FY25. (ANI)

You Might Also Like

India go down 1-2 against Argentina in FIH Hockey Pro League 2024/25 match

WTC Final: Australia fight back to end Day 2 on 144/8, extending lead to 218 runs against South Africa

Ahmedabad plane crash: Tata Group to give Rs 1 crore each to victims’ families

‘Most heartbreaking and traumatic time’: UK Royal Family expresses grief over Air India plane crash

‘No word yet on loved ones’: Families await clarity after Air India plane crash in Ahmedabad

TAGGED: CAD, current account, deficit, export, FDI, GDP, gold, import, India, NRI, Public tv english, services, software
Share This Article
Facebook Twitter Whatsapp Whatsapp Telegram
Share

Follow US

Find US on Social Medias
FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow

Weekly Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]
Popular News
CricketLatestMain Post

Indian spinners dominate as New Zealand post 251/7 in Champions Trophy final

Public TV English Public TV English March 9, 2025
‘Heart filled with gratitude’: Chiranjeevi receives Lifetime Achievement Award at House of Commons
NDA to sweep Uttar Pradesh winning 74 seats: Exit polls
European Investment Bank provides Rs 2,800 crore loan for Bengaluru suburban railway
NFL star Tom Brady, Gisele Bundchen part ways after 13 years of marriage
- Advertisement -
Ad imageAd image
Global Coronavirus Cases

Confirmed

0

Death

0

More Information:Covid-19 Statistics

You Might Also Like

NationalBengaluruKarnatakaLatestMain PostStates

Caste census is for social justice, not politics, says Deputy CM Shivakumar

June 12, 2025
NationalIndiaLatestMain Post

Goa govt declares state mourning on June 13 in view of Ahmedabad plane crash

June 12, 2025
CrimeBengaluruKarnatakaLatestMain PostStates

Youth arrested for murder after five days

June 12, 2025
NationalIndiaLatestMain Post

‘Grassroots leader’: BJP leaders mourn death of former Gujarat CM Vijay Rupani in Ahmedabad plane crash

June 12, 2025

Categories

  • ES Money
  • U.K News
  • The Escapist
  • Insider
  • Science
  • Technology
  • LifeStyle
  • Marketing

About US

We influence 20 million users and is the number one business and technology news network on the planet.

Subscribe US

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]

About Us

We influence 20 million users and is the number one business and technology news network on the planet.

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]

Public TV EnglishPublic TV English
Follow US
Welcome Back!

Sign in to your account

Lost your password?