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India Posts Q1 Current A/C Surplus

India Posts Q1 Current A/C SurplusIndia Posts Q1 Current A/C Surplus

India’s current account is likely to be in surplus in the first quarter of this financial year, says a Citigroup report, PTI reported. According to the global financial services major, trade deficit is stabilizing at lower levels, and incorporating August trade data, the trends are pointing to a “broadly balanced” current account scenario. “Following a moderate current account deficit of $0.4 billion or minus 0.1% of GDP in January-March quarter, we expect current account to come in at a surplus of $2 billion or 0.4% of GDP in April-June quarter,” Citigroup said in a research note. India’s trade deficit stood at $7.7 billion in August, almost unchanged in the last three months and significantly below the average monthly trade deficit of $9.9 billion last fiscal. Imports contracted by 14% year-on-year to $29.2 billion in August, while exports were down only 0.3% year-on-year to $21.5 billion. The report further noted that “incorporating August trade data, the trends are pointing to a broadly balanced current account in the second quarter of this fiscal year (July-September) as well”.

 

Financialtribune.com