India's Current Account Surplus: A Decade High Economic Milestone

India's current account marked a surplus of USD 5.7 billion in Q4 FY24, the first in ten quarters. The deficit narrowed significantly to USD 23.2 billion for FY24, as against USD 67 billion in FY23. Economic experts predict a manageable rise in FY25 CAD due to higher commodity prices and domestic demand.

India's current account reported a surplus of USD 5.7 billion or 0.6% of GDP for the March quarter, as disclosed by the Reserve Bank of India on Monday. This marks the first surplus in ten quarters, signifying a significant boost to the nation's external financial prowess after a prolonged deficit period.

Contrast this to the preceding quarter's current account deficit of USD 8.7 billion or 1% of GDP, the recent figures signal a positive shift. Year-on-year, the deficit stood at USD 1.3 billion or 0.2% of GDP in the same quarter last year, indicating a substantial improvement.

For the fiscal year FY24, the overall current account deficit reduced remarkably to USD 23.2 billion or 0.7% of GDP from USD 67 billion or 2% of GDP in FY23. RBI's latest release highlighted substantial gains from net services receipts and foreign portfolio investments, bolstering the current surplus scenario.