The country’s balance of payments (INBOP=ECI) was at a surplus of $31.9 billion in the first quarter of the financial year 2021/22, compared with a surplus of $19.8 billion a year earlier.
What is current account surplus?
Current account surpluses refer to positive current account balances, meaning that a country has more exports than imports of goods and services. … Current account surpluses can also indicate low domestic demand or may be the result of a drop in imports due to a recession.
What was India’s current account surplus in q1 of the current fiscal year?
India’s current account balance saw a far lower surplus of $6.5 billion (0.9% of GDP) in the first quarter ended June 30, (Q1FY22) compared with a surplus of $19.1 billion (3.7% of GDP) a year earlier.
What is current account in Indian economy?
The current account balance is based on India’s receipts from and payments to the rest of the world for four items: goods, services, primary income and secondary income. Based on the balance of these four items, the current account could either show a surplus or a deficit.
What does India’s current account surplus stand at as on June 2020?
India’s retail inflation rises marginally to 4.48% in O …
The current account surplus stood at $6.5 billion or 0.9% of GDP compared to $19.1 billion in the same quarter a year ago, which was a record high. In the preceding January-March quarter the current account was in a deficit of $8.1 billion.
Why is current account surplus good?
A current account surplus implies a higher inflow of forex than outflow. It helps with an increase in reserves which is critical for maintaining financial and external sector stability.
Which countries are in surplus?
Countries With The Highest Budget Surplus vs GDP
|Rank||Country||Surplus (as % of GDP)|
How do you calculate current account surplus?
Current Account Formula = (X-M) + NI + NT
For trade balance to be positive a country needs to have more exports than imports. The exports and imports include both goods and services produced in the country.
What is a capital account surplus?
A surplus on the capital account means that there are more investment funds flowing into the country than out. This may be to fund a deficit on the current account of the balance of payments. … This means that a surplus on the capital account will lead to outflows of interest and dividends in the future.
What is India’s current account deficit?
The current account was at a surplus of $6.5 billion or 0.9% of GDP in the June quarter from a deficit of $8.1 billion in March quarter, aided by a narrowing trade deficit. Brokerage houses and institutional reports however predicted current account to GDP ratio to be back to a deficit of 0.9-1.1% in FY22.
Is India a surplus economy?
India’s current account balance posted a surplus of $6.5 billion (0.9 per cent of GDP) in Q1FY22 as against a deficit of $8.1 billion (one per cent of GDP) in Q4FY21.
Does India have capital account surplus?
India All States: Capital Account Surplus or Deficit data was reported at 14,288.446 INR mn in 2021. This records a decrease from the previous number of 401,849.705 INR mn for 2020.
Why did India have a current account surplus?
“The surplus in the current account in Q1 2021/22 was primarily on account of contraction in the trade deficit (INTRDQ=ECI) to $30.7 billion from $41.7 billion in the preceding quarter, and an increase in net services receipts,” RBI said in the release.