• UGI USER
  • Jun 25, 2024
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INDIA’S CURRENT ACCOUNT SURPLUS IN Q4 FY24

Why in the news?

  • India’s current account balance registered a surplus of $5.7 billion in Q4 FY24, amounting to 0.6% of GDP, marking a significant turnaround from previous deficits.
  • This shift was primarily driven by a reduced merchandise trade deficit, which narrowed to $50.9 billion from $69.9 billion in Q3 FY24.
Source:Oliveboard

Key Highlights

  • India reversed a ten-quarter deficit streak, achieving a current account surplus, signaling economic stability.
  • Services exports grew by 4.1%, while remittances increased by 11.9% to $32 billion, contributing to a positive balance.
  • FY24 saw the current account deficit decrease to $23.2 billion (0.7% of GDP) from $67 billion in FY23, indicating improved external sector performance.
About Current Account Balance (CAB):

A component of a country’s balance of payments (BOP) that records financial inflows and outflows.

Significance: Reflects economic activity, encompassing trade, services, capital, and financial transfers like remittances.

  • Insight: Crucial for assessing a nation’s economic health and external financial relations.

Associated Article:

https://universalinstitutions.com/current-account-deficit/#:~:text=When%20the%20value%20of%20the,called%20the%20current%20account%20deficit.