India Economy Watch - Current Account Sees Another Deficit In Q4 FY21: Motilal Oswal
An Indian five hundred rupee banknote is arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

India Economy Watch - Current Account Sees Another Deficit In Q4 FY21: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

India’s current account deficit came in at $8.1 billion (or 1% of gross domestic product) in Q4, from a minor deficit of $2.2 billion (or 0.3% of GDP) in Q3 FY21.

This figure in Q4 FY21 was in line with our estimates, but slightly higher than Bloomberg consensus of $7.5 billion.

With this, India’s current account balance stood at a surplus of $24 billion (or 0.9% of GDP in FY21) on account of surpluses reported in the first half.

Higher merchandise trade deficit was the driver of current account deficit in Q4 FY21.

The same stood at 5.4% of GDP in 4Q vis-a-vis 4.7% of GDP in Q3 FY21.

Click on the attachment to read the full report:

Motilal Oswal Ecoscope Current Account Deficit .pdf

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