India is actively monitoring its external sector trends and evaluating measures to prevent a sharp increase in the current account deficit (CAD), which has recently widened to $13.2 billion in the December quarter, up from $11.3 billion a year earlier. Commerce and Industry Minister Piyush Goyal highlighted the government's coordinated efforts across multiple departments to tackle economic challenges stemming from a volatile global environment. The CAD for the first nine months of FY26 stands at $30.1 billion, or 1% of GDP, which is an improvement compared to $36.6 billion in the same timeframe the previous year. Factors such as weak export demand, particularly from the US, and rising import bills have raised concerns about India's trade balance. Despite these challenges, strong services exports and remittance inflows continue to support the balance of payments. Goyal expressed confidence in India's resilience and emphasized the government's commitment to boosting exports, enhancing manufacturing competitiveness, and diversifying trade partnerships. Additionally, India is pursuing free trade agreements to improve market access for domestic exporters.