India expected to post first current account surplus in 9 years

Mumbai: India is expected to have a current account surplus of US$ 4 billion, or 0.8 per cent of its gross domestic product (GDP), in April-June 2016 quarter, which would be the first surplus since January-March 2007, according to forecasts given by investment houses' research notes and from analysts. For FY 2016-17, India is expected to post a deficit even lower than last year's 1.1 per cent of GDP, as foreign investment inflows remain steady. Analysts have revised down their forecasts for FY 2016-17 deficit to below 1.0 per cent from earlier projections of between 1.2-1.5 per cent. During April-June 2015 quarter, India recorded a current account deficit of US$ 6.2 billion, which was equivalent to 1.2 per cent of GDP. Imports during April-July 2016 declined 16.33 per cent to US$ 114 billion, owing to lower gold and oil import bills, while exports declined 3.62 per cent to US$ 87 billion.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.