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8. Current account balance posts surplus of 0.6% of GDP in Jan-Mar 2024: RBI

India’s current account balance posted a surplus of $ 5.7 billion or 0.6 per cent of gross domestic product
(GDP) during the fourth quarter ended March 2024 (Q4FY24). This comes after a gap of 10 quarters on
the back of a surge in services exports, according to latest data released by the Reserve Bank of India (RBI).

There was a current account deficit (CAD) of $1.3 billion (0.2 per cent of GDP) during the fourth quarter
of the previous financial year. CAD was $8.7 billion (1 per cent GDP) during the quarter ended December
2023 (Q3FY24).

For FY24, the CAD moderated to $23.2 billion (0.7 per cent of GDP) from $67 billion (2 per cent of GDP) in
FY23. This was on the back of a lower merchandise trade deficit to a 10-quarter low of $50.9 billion in Q4
FY24 from $69.9 billion in Q3 FY24 and a robust expansion in the services trade surplus.

Elaborating on the quarterly trends, RBI said the net services receipt at $42.7 billion was higher in Q4 FY24
than its level a year ago ($39.1 billion). This contributed to the surplus in the current account balance
during Q4.

Figure 16: India’s current account balance

Source- RBI
9. India remains world's fastest growing major economy globally: World Bank

The World Bank predicted that India is set to remain the fastest-growing major economy globally, though
its growth rate is expected to slow. The June ‘Global Economic Prospects’ report maintained the GDP
growth forecast for India at 6.6 per cent for FY25.

After a robust performance in FY24, the World Bank projected an average growth rate of 6.7 per cent (6.7
per cent in FY26 and 6.8 per cent in FY27) annually over the three fiscal years starting from FY25, as
outlined in its Global Economic Prospects for June 2024.

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