FX.co ★ India's Current Account Deficit Widens Slightly in Q4 2024

India's economic landscape experienced a subtle shift in the fourth quarter of 2024 as the country's current account deficit widened. The current account, a vital component of the nation's balance of payments, recorded a deficit of -11.50 billion USD, as updated on 28 March 2025. This marks a slight increase from the previous quarter's deficit of -11.20 billion USD.

The increment, while modest, reflects the challenges the Indian economy faces amid fluctuating global demand and domestic economic activities. Analysts are likely monitoring these trends closely, as persistent deficits in the current account can influence foreign investor confidence and the exchange rate stability of the Indian Rupee.

The report comes at a critical time as policymakers strive to balance economic growth with sustainable financial practices. Understanding the causes behind this deficit increase is crucial for making informed fiscal and monetary policy decisions in upcoming quarters. As India continues to navigate the intricate web of international trade and finance, the current account figures serve as a significant barometer of the broader economic environment.