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India's current account deficit seen falling to around 1pc or USD 10 billion in Q1: India Ratings

India Ratings expects CAD to rise in the second quarter of the current fiscal as it sees merchandise exports declining below USD 100 billion after a gap of eight quarters. Imports are expected to be around USD 163 billion during the period, up from a seven-quarter low of USD 160.3 billion witnessed in Q1 FY24, due to increase in crude prices since July.
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Better save than worry: Why RBI must ensure more timely and updated data on HHNFS

HHNFS are essential because they are the principal instruments for financing the fiscal deficit. In the post-Covid period, the corporate sector met its investment demand from its savings. If so, the only way to finance the countrys fiscal deficit is through HHNFS and CAD. Although the government is consolidating its fiscal deficit, the fall in household HHNFS has been faster than the reduction in fiscal deficit in FY23. This has resulted in the widening of CAD.
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