Current Account Deficit narrows in the last quarter of FY23

India's Current Account Deficit (CAD) narrowed in the last quarter of the previous fiscal on the back of a moderation in trade deficit and increase in service exports. CAD fell to $1.3 billion (0.2% of GDP) in Q4 of FY2023 from $16.8 billion (2% of GDP) in Q3 FY2023, and $13.4 billion (1.6% of GDP) a year ago. The trade deficit eased to $52.6 billion in Q4 FY2023 from $71.3 billion in Q3 FY2023.  "Net invisible receipts were higher in FY23 due to the increase in net exports of services and net private transfer receipts, even though net income outgo was higher than a year ago," the central bank said.