According to brokerage Edelweiss, India's current account deficit will increase in FY23.

India's current account deficit is expected to increase to 2.8 percent of GDP in the forthcoming financial year FY23 . The country's external account or balance of payments position is reduced for the first time in 13 months .

New Delhi (India), June 24: According to brokerage and financial services company Edelweiss Broking, Indias current account deficit (CAD) is expected to increase to 2.8 percent of gross domestic product (GDP) in the forthcoming financial year FY23, reducing the country's external account or balance of payments position for the first time in 13 months.Although the BoP reported a $47.5 billion surplus for the fiscal year, it was down by $40 billion or 46% than the previous year, the brokerage said it was the lowest level in three years.The Indian rupee is in decline due to lower foreign currency receipts as opposed to paymentsoutflows, according to the company, who expects it to grow by more than 5% in the next three months.The current account deficit came in at $38 billion, or 1.2 per cent of GDP, compared to a surplus of $24 billion, or 0.9 per cent of GDP, according to the report.This was mainly due to the net foreign portfolio investment outflow of $16.8 billion, which is in stark contrast to the net inflows of $36 billion in FY21.