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India Q1 GDP Data: The Gross Domestic Product (GDP) data for the April-June quarter of the current financial year (2023-2024) will be released on Thursday i.e. today. Experts estimate the country’s GDP growth to be between 7.8-8.5 percent. According to ICRA Ratings, GDP growth is expected to pick up to 8.5 percent during this quarter. In the previous quarter i.e. during January-March, the GDP growth was 6.1 percent.
RBI Estimates: The Reserve Bank of India (RBI) has projected GDP growth at 8.1 percent in the April-June quarter of 2023. Thus ICRA’s estimate is higher than the Central Bank’s estimate. ICRA has retained its growth forecast for the financial year 2023-24 at six percent. Which is lower than RBI’s estimate of 6.5 percent.
What will be the current account deficit: With the trade deficit narrowing, India’s current account deficit (CAD) is likely to narrow to around $10 billion in the April-June quarter, which would be one per cent of gross domestic product (GDP). This assessment is presented in a report. India Ratings said in a report that the current account deficit is expected to narrow in the first quarter of the current financial year due to a reduction in the trade deficit. In the same quarter last year, it was $18 billion or 2.1 percent of GDP.
However, the rating agency expects the current account deficit to widen in the second quarter of the fiscal year. For the first time in eight quarters, merchandise exports may fall below $100 billion in the July-September quarter. Imports are estimated at $163 billion during this period, with the rise in crude oil prices playing a major role. In such a scenario, the trade deficit could touch $64 billion in the second quarter of the current fiscal year.