Q4 Blip Can’t Halt First Current Account Surplus in 17 Years

India posted a current account deficit of $8.1 billion, or 1 per cent of GDP, in the last quarter of FY21

India posted a current account deficit of $8.1 billion, or 1 per cent of GDP, in the last quarter of FY21. Still, India recorded its first annual current account surplus of $24 billion, or 0.9 per cent of GDP, in 17 years

This was due to a strong first half of the year when trade deficit narrowed because of resilient software services exports and sharp dip in imports due to the Covid-19 pandemic

Merchandise trade deficit shrunk to $102.2 billion in FY21 from $157.5 billion in FY20, while net earnings from services rose from $84.9 billion to $88.6 billion