Current account balance records surplus of 0.6% of GDP in Q4FY24: RBI

New Delhi, June 25, 2024.

The country’s current account balance recorded a surplus of $5.7 billion, or 0.6 per cent of gross domestic product (GDP) in the January-March 2024 quarter, driven by a lower merchandise trade deficit.

In Q4 FY2023, the current account deficit (CAD) stood at $1.3 billion, or 0.2 per cent of GDP, the Reserve Bank of India’s (RBI) data showed. In Q3 FY24, the CAD was $8.7 billion, or 1 per cent of GDP.

The current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country’s external sector.

For the full year (FY24), the country’s current account deficit moderated to $23.2 billion, or 0.7 per cent of GDP, from $67 billion, or 2 per cent of GDP, during FY23, on the back of a lower merchandise trade deficit, the RBI data released on Monday showed.

In Q4 FY24, the merchandise trade deficit stood at $50.9 billion, lower than $52.6 billion in the year-ago period.