InvestorQ : Is India expected to report a current account surplus in the year 2020?
Ria Jain made post

Is India expected to report a current account surplus in the year 2020?

Answer
user profile image
Dia Deshpande answered.
1 month ago


Global brokerage house, Nomura, does expect India to post a current account surplus of 0.4% of GDP for the calendar year 2020. This is despite that fact that India moved from a small trade surplus in Jun-20 to a trade deficit of $4.83 billion in Jul-20.

The 0.4% current account surplus, estimated by Nomura, contrasts with the 1% current account deficit reported in the previous year. Two macro factors have been largely responsible. Low oil prices and weak gold demand will keep the current account healthy.

In the case of Indian economy, Nomura estimates that, even though, imports and exports will rapidly pick up in the next two quarters, private flows and NRI remittances would still remain robust, giving a major boost and pushing towards a current account surplus.