India’s current account turned surplus, albeit marginally, in the fourth quart
India’s current account turned surplus, albeit marginally, in the fourth quarter of FY20 as trade deficit narrowed, the Reserve Bank of India (RBI) said on Tuesday.
The current account balance turned surplus by $0.6 billion, or 0.1 per cent of Gross Domestic Product (GDP), in Q4FY20 as against a deficit of $4.6 billion, or 0.7 per cent of GDP, in the year-ago quarter and $2.6 billion (0.4 per cent of GDP) in Q3.
“The surplus was primarily on account of a lower trade deficit at $35 billion and a sharp rise in net invisible receipts at $35.6 billion as compared with the corresponding period of last year,” the RBI said.
On a full-year basis, though, the current account deficit narrowed to 0.9 per cent of GDP, from 2.1 per cent in FY19, helped by trade deficit shrinking to $157.5 billion from $180.3 billion in FY19.
Aditi Nayar, principal economist at ICRA, said the current account surplus came as a surprise, as she was expecting deficit of $5.5-6.5 billion, or 0.8 per cent of GDP, in Q4.
Nayar said she…