The current account balance posted a surplus of 0.6% of GDP in Q4 FY24 vis-à-vis a mild deficit of 0.2% in Q4 FY23
Download ReportQuantEco Research || Q4 FY24 BoP - Current account in surplus after 10 quarters
The dynamics on current and capital account continue to provide a sense of stability to India’s Balance of Payments. The current account balance posted a surplus of 0.6% of GDP in Q4 FY24 vis-à-vis a mild deficit of 0.2% in Q4 FY23. The accompanying net balance of payments position registered a strong surplus of 3.3% of GDP, the highest in the last ten quarters. Moderation in international commodity prices along with a structural improvement in services surplus have been a key source of comfort for India’s current account deficit. On the capital account front, subdued momentum in direct investments is getting offset by cyclical optimism on portfolio flows, which is further aided by India’s inclusion in EM bond indices. We fine-tune our FY25 current account and balance of payment forecast to -0.9% of GDP (USD -34 bn) and 1.3% of GDP (USD 50 bn) respectively from -1.0% of GDP (USD 38 bn) and 1.3% (USD 52 bn) earlier