City
Epaper

India's current account deficit in Q2FY22 seen at 1.3% of GDP: Ind-Ra

By IANS | Updated: December 13, 2021 21:05 IST

New Delhi, Dec 13 Cost pressure, led by rise in commodity prices, is expected to take India's current ...

Open in App

New Delhi, Dec 13 Cost pressure, led by rise in commodity prices, is expected to take India's current account deficit during Q2FY22 to 1.3 per cent of the GDP, India Ratings and Research said on Monday.

However, a relatively stable services trade surplus is expected to cushion the deficit.

"A stable services trade surplus of $24 billion would help rein in the current account deficit at $10.1 billion in 2QFY22. The current account was in surplus of $6.5 billion in Q1FY22," the rating agency said.

Besides, India Ratings expects India's merchandise import volumes to recover further with the economic activities picking up with a decline in Covid-19 caseload, improved vaccination rates, and the festive season demand.

Accordingly, India's merchandise import bill is estimated to be around $150 billion in Q3FY22.

"However, the surge in Covid-19 cases in key export destinations such as the EU and the US may keep the merchandise exports at around $95 billion in Q3FY22. Therefore, the merchandise trade deficit is expected to come in at $55 billion in Q3FY22," the agency said.

It said that spread of the newly-found Omicron variant may play a spoilsport causing an economic disruption.

Taking Omicron into consideration, it pegs India's exports in FY22 closer to the Centre's target of $400 billion.

"To achieve the export target of $400 billion in FY22, exports will have to grow 18.5 per cent YoY in the remaining five months of this fiscal. Given the trend so far in this fiscal, Ind-Ratings believes it is achievable," it added.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: indiaNew DelhiIndia Ratings And ResearchIndia RatingsThe new delhi municipal councilDelhi south-westIndiUk-indiaRepublic of indiaIndia india
Open in App

Related Stories

MumbaiUniversity of Bristol Chooses Mumbai for Its First Overseas Campus, Set to Open in September 2026

NationalRaksha Bandhan 2025: Now You Can Send a Rakhi to Your Brother in India Post's Waterproof Envelope — Here's How to Track Your Parcel

NationalGold in Dubai Cheaper Than India: Pricing, Rules, and Import Limits Explained

NationalIndia Spends ₹1.38 Lakh Crore Annually on Edible Oil Imports

International‘This Might Hit You Hard’: NATO Chief Mark Rutte's Warning to India, China, and Brazil Over Russia Ties Amid Ukraine War

International Realted Stories

InternationalPakistan Met dept forecasts rain amid deluge fears

InternationalNetanyahu, Trump push Gaza ceasefire plan with ultimatum to Hamas: Report

InternationalPakistan extends crackdown on Baloch activists: Mahrang Baloch, BYC Leaders back in Police custody

InternationalTrump fell for Pakistan's oil hoax, Baloch leader warns of strategic consequences and terror financing

InternationalPakistan's PTI plans "guerrilla struggle" after denial for "workers' convention"