New Delhi, June 4 -- A host of factors including India's growing trade deficit in the face of surplus factory capacity in China, uncertainty from the US reciprocal tariffs announcement, short-term foreign capital outflows, weaker remittances due to a slowing global economy, and the potential headwinds from US President Donald Trump's proposed tax on remittances could lead to a widening of India's current account deficit (CAD), experts said.

This widening is expected in Q4FY25 and subsequent quarters unless there's a change in macroeconomic fundamentals, they added.

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To be sure, the CAD rose marginally to $11.5 billion, or 1.1% of GDP, in the October-December 2024 quarter (Q3F...