India’s current account saw a surplus, In the first quarter of this fiscal year, said by a Finance Ministry official. Showing the unsure attitude to investment pushing the account, imports have reduced- he said. The current account was last seen in surplus In 2007,the month of January-March. It was that time.
In this month for the first quarter sometime later RBI will unveil official data of current account. Arguing in the global marketplace, this excess will make the lagging exports of India less and also help increasing Rupees,
If the data shows surplus RBI may have to step in to make sure that rupee does not become overly strong in the foreign exchange market- said by Ministry official.
With Union Commerce Ministry Federation of Indian Export Organisations has talked to manage the ‘overvalued’ rupee. In world market owing to this. Indian exporters have lost competitiveness.
In April-July 2016 India’s exports to the US decreased by 1.1% compared to a respective quarter of the final year. Indian Imports from China also decreased by 7.4%. China is the biggest Importer and US is the largest Export market for India.
In the January-March quarter Following a moderate current account deficit of $. 4 billion, or (-) 0.1 percent of GDP, in April-June quarter, we expect current account to come in at a surplus of $2 billion or 0.4 per cent of GDP- said by Citigroup report.
An anticipated current account projection for the July-September quarter was given by this analysis. After the August trade data was released, The forecast has been made. In August, India’s trade deficit is at $7.7 billion, which is almost same in the previous three months, but it is rather less than the average monthly trade deficit of $9.9 billion as observed in the previous fiscal.
After a gap of 19 months, after rising June, Exports fell in July and August. Exports drop from 0.3 % to $21.5 billion when compared with August. But there was a sharp drop of 14 % to $29.2 billion from last year August.
By the value of good imported, services and income from investment, the exports value of the country has been surpassed which is shown by Deficit in the current account.