Current Account Deficit At 0.2% Of GDP In Q3; H1 FY22 Borrowing Front-Loaded: Nirmal Bang
Indian two thousand rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

Current Account Deficit At 0.2% Of GDP In Q3; H1 FY22 Borrowing Front-Loaded: Nirmal Bang

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Nirmal Bang Report

The current account returned to a deficit of $1.7 billion or 0.2% of gross domestic product in Q3 FY21.

This was against our expectation of a marginal surplus of $0.9 billion or 0.1% of GDP. The return to deficit was mainly on account of a widening trade deficit (as growth returned) and higher outflows as income payments.

Net services exports and remittances improved both QoQ and YoY, pointing to the return of growth globally.

The capital account surplus stood at $33.5 billion in Q3 FY21, nearly double from $15.4 billion in Q2 FY21, driven by higher portfolio flows.

Click on the attachment to read the full report:

Nirmal Bang H2FY22 Borrowing-3QFY21 Balance of Payments - Economy Update 01 April 2021.pdf

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