India Economy Watch - Higher-Than-Expected Current Account Surplus In Q1 FY22: Motilal Oswal
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Motilal Oswal Report
India’s current account reported a surplus of 6.5 billion (0.9% of gross domestic product) in Q1 FY22 from a deficit of $8.1 billion (or 1% of GDP) in Q4 FY21.
This was higher than our expectation of $1 billion and Bloomberg consensus of $2 billion, due to a higher surplus in the invisibles account (at $37.2 billion in Q1 FY22 versus $33.6 billion in Q4 FY21 and our forecast of $ 31.9 billion in Q1 FY22).
Lower merchandise trade deficit drove higher current account surplus.
It reduced to $30.7 billion in Q1 FY22 as against $ 41.7 billion in Q4 FY21.
Additionally, net receipts from services increased on the back of higher net exports of telecom, computer, and information services.
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