Goyal said multiple departments of the government were coordinating efforts to address emerging economic challenges arising from volatile global conditions. He indicated that policymakers were examining additional interventions to manage external sector risks and maintain macroeconomic stability.
The minister’s comments come at a time when concerns over India’s trade balance and currency movement have resurfaced due to weak export demand in key international markets, particularly the US, and elevated import bills in select sectors, news agency PTI reported.
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According to data released by the Reserve Bank of India on March 2, India’s current account deficit widened to $13.2 billion, or 1.3% of GDP, during the December quarter, compared with $11.3 billion in the corresponding period a year earlier. The increase was largely attributed to a higher merchandise trade deficit following softer exports to the US market.
Despite the rise in the quarterly deficit, the overall current account position for the first nine months of FY26 remained relatively contained. The CAD for April-December 2025 stood at $30.1 billion, equivalent to 1% of GDP, lower than $36.6 billion, or 1.3% of GDP, recorded in the same period of the previous financial year.
Economists have pointed out that India’s external balances have remained manageable despite persistent geopolitical tensions, supply chain disruptions and uneven global demand. Strong services exports, especially in information technology and business services, along with steady remittance inflows from overseas Indians, have continued to provide support to the balance of payments.A current account deficit arises when a country’s total import payments for goods, services and transfers exceed earnings from exports and inward remittances over a specified period. A sustained widening in the deficit can increase pressure on the domestic currency and raise concerns over external financing requirements.
The rupee has remained under pressure in recent months amid a stronger US dollar, higher crude oil prices and global risk aversion triggered by geopolitical uncertainties and concerns around slowing growth in advanced economies. Market participants have been closely watching the government and the RBI for possible steps to support the currency and ensure adequate foreign exchange liquidity.
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Goyal said the global economic environment continued to remain difficult but expressed confidence in India’s ability to navigate the situation. He added that the government remained optimistic about the country’s resilience and its capacity to emerge stronger despite ongoing international headwinds.
Recent reports have highlighted that policymakers are focusing on boosting exports, strengthening manufacturing competitiveness and diversifying trade partnerships to cushion the economy from external shocks.
India has also been pursuing free trade agreements with several countries and economic blocs to improve market access for domestic exporters and reduce dependence on a limited set of export destinations.