‘Crude’ impact on economy: $10 rise in Brent widens India's CAD by 0.5%, say analysts as oil sizzles to 10-month high
macroeconomic indicators. According to latest estimates by market analysts, India's current account deficit (CAD) -which measures the difference between exports and imports of goods and services – is also impacted by high crude prices.
CAD is a key indicator of the balance of payment of a country and in the current scenario of the momentum picked up by crude rates, every $10 dollar rise in Brent futures potentially widens the CAD by 0.5 per cent. According to the last government data on CAD, the deficit in the January-March quarter of FY23 narrowed to $1.3 billion, accounting for 0.2 per cent of the country's gross domestic product (GDP), according to the Reserve Bank of India (RBI).
India Ratings has estimated that the CAD in the April-June quarter of ongoing fiscal will narrow down to $10 billion or 1 per cent of GDP. MORE TO COME…Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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