India Records Remarkable Current Account Surplus Amid Global Economic Challenges

India recorded a current account surplus of USD 5.7 billion in the March quarter. This is a significant improvement from the USD 1.3 billion deficit a year ago and the USD 8.7 billion deficit in the previous quarter. For FY24, the deficit narrowed to USD 23.2 billion.

India has reported a current account surplus of USD 5.7 billion, equivalent to 0.6% of GDP, for the March quarter, according to a Reserve Bank of India release on Monday. This marks a considerable improvement over the same period last year, which recorded a deficit of USD 1.3 billion, or 0.2% of GDP. The previous quarter ending December 2023 had a deficit of USD 8.7 billion, amounting to 1% of GDP.

Overall, for the fiscal year FY24, India's current account deficit significantly narrowed to USD 23.2 billion, or 0.7% of GDP, as opposed to the USD 67 billion deficit, or 2% of GDP, seen in FY23. The Reserve Bank attributes these developments to improvements in the balance of payments, as detailed in their latest release.