According to the data released by the Reserve Bank of India, India reported a current account surplus of 0.9% of GDP in FY 21. In FY 20 there was a current account deficit of 0.9%. The reason for the Current Account Surplus in FY21 is a sharp contraction in the trade deficit to US$ 102.2 billion from US$ 157.5 billion in 2019-20. India has seen a Current account surplus for the first time in 17 years.
Current Account Surplus/Deficit is the difference between Export and Import.
- Current Account Surplus implies that Export from India was more than Import into India.
- Current Account Deficit implies that Import into India was more than Export from India.