Key facts
- India recorded a current account surplus of $4.7 billion in April.
- This contrasts with a $4.8 billion current account deficit in April of the previous year.
- Higher inward remittances contributed to the April surplus.
- A surplus in the services sector also drove the April surplus.
- India's merchandise trade deficit narrowed to $28.21 billion in May.
- Higher exports in May helped offset import costs.
- A U.S.-Iran pact is expected to ease import costs.
India reported a current account surplus of $4.7 billion in April, marking a significant turnaround from a $4.8 billion deficit recorded in April of the previous year. This positive shift was primarily attributed to an increase in inward remittances and a surplus generated by the services sector.
In a separate but related development, India's merchandise trade deficit experienced a marginal decrease, narrowing to $28.21 billion in May. This reduction was facilitated by higher export values, which partially compensated for the overall import expenditures. The global economic landscape also presents potential influences, with the U.S.-Iran pact aimed at reopening the Strait of Hormuz anticipated to potentially lower import costs for India.