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India records current account deficit of 0.2% in December quarter

In the current fiscal, as the pandemic impacted trade, the current account had been in surplus in the previous two quarters, at $15.1 billion and USD 19 billion, respectively, as per the data on balance of payments released by the RBI on Wednesday.

March 31, 2021 / 07:38 PM IST
RBI | Representative image. (Source: Reuters)

RBI | Representative image. (Source: Reuters)

India's current account swung to a deficit for the first time in the current fiscal, with the gap coming at $1.7 billion or 0.2 per cent of the GDP in the December quarter.

In the current fiscal, as the pandemic impacted trade, the current account had been in surplus in the previous two quarters, at $15.1 billion and $19 billion, respectively, as per the data on balance of payments released by the RBI on Wednesday. The critical measure of a country's external strength now stands at a surplus of 1.7 per cent of GDP for the first nine months of the fiscal year as against a deficit of 1.2 per cent in the year-ago period.

Government gives Monetary Policy Committee unchanged inflation target till FY26

In the December quarter, there was a rise in the merchandise trade deficit to $34.5 billion from $14.8 billion in the preceding quarter, and an increase in net investment income payments. Net services receipts increased to $23.6 billion, both sequentially and on a year-on-year basis, primarily on the back of higher net export earnings from computer services, the RBI said.