Rising imports to push CAD to 1.9% this fiscal year: Barclays

NEW DELHI: Following the record USD 23.27 billion trade deficit in November, foreign brokerage Barclays has increased its current account deficit (CAD) forecast to 1.9 per cent of GDP at USD 60 billion for 2021-22 as compared to USD 45 billion earlier.

The government released the trade data on Wednesday which showed that exports rose 26.5 per cent year-on-year to USD 29.88 billion last month, while imports soared 57.2 per cent to USD 53.15 billion, leaving a trade deficit of USD 23.27 billion.

A sustainable merchandise deficit level on an average basis is around USD 1617 billion per month for the country, which can keep the CAD closer to a sustainable range of 2 per cent.