Question
What was India's current account deficit (CAD) as a
percentage of GDP in Q3FY23?Solution
  India’s current account deficit (CAD) narrowed substantially to $18.2 billion in the quarter ended December 2022, or 2.2 percent of gross domestic product, from $30.9 billion in Q2FY23 (3.7 percent of GDP).     Behind the lower CAD in Q3FY23 was the narrowing of the merchandise trade deficit to $72.7 billion from $78.3 billion in Q2FY23, in addition to robust services and private transfer receipts.   The net outgo from the primary income account, mainly reflecting payments of investment income, increased to $ 12.7 billion in the December 2022 quarter.   Private transfer receipts, mainly representing remittances from Indians employed overseas, amounted to $30.8 billion, an increase of 31.7 percent YoY.
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