India current account surplus at 0.9% in Q1FY22 after previous qtr deficit

Low fuel demand, higher NRI remittances drive surplus

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. The current account surplus was $19.1 billion (3.7 per cent of Gross Domestic Product (GDP) in Q1FY21, according to Reserve Bank of India (RBI).

The surplus in the quarter ended June 2021 (Q1FY22) was due to contraction in the trade deficit for goods to $30.7 billion from $41.7 billion in Q4FY21 and increase in net services receipts. The trade deficit for goods was $11.7 billion in Q1FY21.

Aditi Nayar,