The chief economic adviser (CEA) -- Krishnamurthy Subramanian has said India is likely to report a current account surplus at the end of the current financial year ending in March 2021, mainly led by a fall in imports.
He said demand for imports has fallen amid the COVID-19 pandemic, coupled with recent economic reforms initiated by the government to boost manufacturing. India's current account surplus rose to a record $19.8 billion in April-June (Q1) as its trade deficit narrowed sharply.
The current account surplus increased sharply to 3.9% of the gross domestic product (GDP) in the first quarter, compared to 0.1% in the preceding quarter. This was the second consecutive quarter that the country has seen a current account surplus.