India's current account shifted to a surplus position from January-March

According to a recent survey conducted among 22 economists, it is projected that India's current account balance experienced a positive shift in the January-March period, marking the first quarterly surplus in nearly two years. 

So, this turnaround can be attributed to a narrower trade deficit and an increase in services exports. The survey indicates that the current account balance is expected to register a surplus of $3.3 billion, equivalent to 0.4% of the country's gross domestic product (GDP), for the final quarter of the 2022/23 fiscal year. 

This represents a significant improvement compared to the previous quarter's deficit of $18.2 billion or 2.2% of GDP. The forecasts provided by the economists varied widely, ranging from a deficit of $5.0 billion to a surplus of $7.8 billion.

According to the poll suggested, the balance of payments was forecast in a surplus of $9.8 billion last quarter, compared with $11.1 billion in the preceding three-month period.

The current account deficit (CAD) was predicted to average -1.5% of GDP this fiscal and -1.8 percent next, compared with -2.0 percent seen in the previous fiscal.

Content Source: Media reports