Union Commerce and Industry Minister Piyush Goyal on Thursday addressed concerns regarding the rupee's depreciation, the widening current account deficit (CAD), and provided updates on the progress of the proposed US-India trade agreement. Goyal stated that the government is actively considering several measures to alleviate further pressure on the CAD, emphasizing that various government branches are collaborating to manage the challenging global economic environment.
Government Monitoring Economic Situation
“We are monitoring the situation. All the various arms of government are working as a team. Several steps are under consideration. The situation is globally quite challenging, but we have the confidence and the courage of conviction that we'll come out winners even in this challenging time,” Goyal said during a press briefing.
Current Account Deficit Data
According to data released by the Reserve Bank of India (RBI) on March 2, India’s current account deficit widened to $13.2 billion, or 1.3% of GDP, in the October-December quarter, compared to $11.3 billion in the same period a year earlier. The increase was primarily attributed to a larger trade deficit resulting from lower exports to the United States. However, for the April-December 2025 period, the CAD narrowed to $30.1 billion, or 1% of GDP, from $36.6 billion, or 1.3% of GDP, during the corresponding period of the previous year. The current account deficit represents the gap between a country’s imports and exports of goods and services, along with other external payments and receipts.
No Plans to Curb Non-Essential Imports
When asked whether the government was considering steps to restrict non-essential imports, Goyal clarified that there are currently no such plans. However, he noted that citizens have been encouraged to reduce spending on products that rely on imports. “No such plans of that sort right now, but we have of course made an appeal to all the citizens of India to be more conscious about their spending on products which are import dependent and it's just very natural that every Indian who trusts Prime Minister Modi has taken cognisance of that and is helping the country in every smaller big way with their own actions. I'm really proud of every Indian who has taken Prime Minister Modi's appeal to heart and is contributing to nation-building,” he said.
US Investment Commitments
Goyal also highlighted continued investment commitments from the United States, particularly in the technology sector. “US commitment upwards $60 billion in last six months looking at Amazon, Google data centre investment pledge; US-India truly working as natural partners, complement each other,” he said.
Trade Deal Timeline
Regarding the timeline for discussions on the trade deal announced earlier, the minister said the process would proceed as scheduled. “When we launched itself, if you recall, we had said that the first round of talks will happen in the second half of 2026. We will have it as scheduled.” Earlier, a senior United States official stated that Washington and New Delhi are making progress towards a finalized trade deal as the two sides held fresh negotiations in the American capital. “The Trump administration and India continue to have positive and productive discussions towards a finalized trade deal,” the official told ANI in response to a question on the current status of the ongoing trade talks between the two countries in Washington, DC. Indian delegates have been arriving in Washington for the latest round of negotiations. Another official familiar with the discussions, speaking on condition of anonymity, said the two sides are close to wrapping up an agreement, with most substantive issues already resolved.
