CAD starting to look unsustainable

Given the dramatic worsening of the trade deficit, to nearly $60 billion in Q3 as compared to $48 billion in Q2 and $42 billion in Q1, it’s not surprising Q3FY13’s current account deficit (CAD) is the highest independent India has ever seen at 6.7% of GDP. Though Q3FY13 exports fell 4% versus Q3FY12, they rose in absolute terms on a sequential basis—from $69.8 billion in Q2 to $71.8 billion in Q3.

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