SME Times News Bureau | 30 Sep, 2020
India
posted a healthy current account surplus in Q1FY21 on the back of lower trade
deficit, official data showed on Wednesday.
According to Reserve Bank of India's data on India's Balance of Payments (BoP),
a year-on-year basis the Q1FY21 surplus stood at $19.8 bil lion from a deficit
of $15 billion reported for the corresponding period of the previous fiscal.
"India's current account balance (CAB) recorded a surplus of $19.8 billion
(3.9 per cent of GDP) in Q1 of 2020-21 on top of a surplus of $0.6 billion (0.1
per cent of GDP) in the preceding quarter, i.e., Q4 of 2019-20; a deficit of
$15 billion (2.1 per cent of GDP) was recorded a year ago," the Reserve
Bank said in its statement on developments in India's Q1FY21 BoP.
"The surplus in the current account in Q1 of 2020-21 was on account of a
sharp contraction in the trade deficit to $10 billion due to steeper decline in
merchandise imports relative to exports on a year-on-year basis."