Economy to shut FY21 with present a/c surplus: RBI


Mumbai, July 27

For the primary time since FY04, the financial system is ready to shut the present fiscal with a present account surplus of 0.4% of GDP, boosted by falling imports and crude costs, and never pushed by higher exports, in line with a report.

After many quarters, the financial system logged in a marginal present account surplus in June quarter at 0.1% or $600 million as towards a deficit of $4.6 billion or 0.7% of GDP in FY19, in line with the newest RBI knowledge.

For fiscal 2020, present account deficit (CAD) improved to 0.9% of GDP from 2.1% in FY19.

“For the first time since FY04, the economy is set to register a small current account surplus of 0.4% of GDP in FY21…led by weak domestic demand and lower crude prices leading to a collapse in imports rather than a strong export recovery,” Tanvee Gupta Jain, the home economist at UBS Securities India stated.

According to the RBI, in FY04, the nation logged in present account surplus at $10.6 billion which was 1.8% of GDP of that yr.

However, she added the excess development is not going to be sustained for lengthy as rising crude costs, gradual restoration in home demand and solely a modest restoration in exports will reverse the development. — PTI

First time since FY04

  • For the primary time since FY04, the financial system logged in a marginal present account surplus in June quarter at 0.1% or $600 million
  • For fiscal 2020, present account deficit (CAD) improved to 0.9% of GDP from 2.1% in FY19
  • In FY04, the nation logged in present account surplus at $10.6 billion which was 1.8% of GDP of that yr



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