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

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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.

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Motilal Oswal Ecoscope Current Account Deficit .pdf

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